Market Wrap: Stocks, Bonds, Commodities
Wall Street’s three major indexes closed higher on Monday with the biggest gains in technology stocks as investors focused on the potential for more government stimulus measures even as they worried about an increase in coronavirus cases in the United States and other countries.
The Dow Jones Industrial Average advanced 154 points (0.60%) to 26,025.20, the S&P 500 rose 20.20 points (0.66%) to 3,112.15 and the Nasdaq Composite gained 111.20 points (1.11%) to 10,056.50.
Asian stocks were set to edge up on Tuesday after oil prices rose and technology firms pushed Wall Street higher, although investors remained worried about fresh coronavirus outbreaks across the globe.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.86% to 654.20 levels. Australian index down 0.20% to 5,934.50. Japan’s Nikkei higher 0.56% to 22,567.35.
European stocks were lower on Monday, with the Stoxx Europe 50 Index slipped 0.84% to 3,241.69.40, Germany’s DAX lost 0.55% to 12,262.97 and France’s CAC fell 0.62% to 4,948.70.75 and U.K.’s FTSE 100 down 0.76% to 6,244.62.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield lost 0.75% to 0.699.
Oil prices were steady on Tuesday, holding onto the previous session’s gains, amid more signs of fuel demand picking up after the depths of the coronavirus pandemic as major crude producers continue to stick to supply cuts.
Spot Brent crude Oil slipped 0.75% to $42.75 per barrel. US West Texas Intermediate crude futures were fell 1.10% to $40.34 a barrel.
Today, Bullion prices lower 0.15% to $1752.40 per ounce.
Market Wrap: Forex
The dollar was up on Tuesday morning, steadying an earlier surge after White House trade advisor Peter Navarro clarified his statements concerning the U.S.-China trade deal.
U.S. President Donald Trump provided further assurance after he tweeted that the deal was “still intact.”
The Euro US Dollar (EUR/USD) widely traded flat today. This left the pairing trading around $1.12580. The pound traded 0.15% lower to 1.24490.
The Japanese yen fell against the U.S. dollar on Tuesday as demand for risky currency rose. Today US/JPY rose 0.25% to 107.110.
Other commodity-related currency broadly edged lower against U.S dollar, AUD/USD declined 0.15% to 0.68970 and NZD/USD lost 0.25% to 0.64640.
EUR/USD Intraday: Support at 1.12360
Our pivot point is at 1.12360
Preferable Price Action: Take Long positions above pivot level with targets at 1.12891 & 1.13152 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.11835 & 1.11586.
Comment: Pair above 20MA & 55MAand RSI above 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
GBP/USD Intraday: Bias on Upside
Our pivot point is at 1.24320
Preferable Price Action: Long positions above pivot with targets at 1.24787 & 1.25034 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.23857 & 1.23586.
Comment: Price above 55MA and MACD in positive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
USD/JPY Intraday: Support at 107.070
Our pivot point is at 107.070
Preferable Price Action: Long position above pivot with the target at 107.384 and 107.580 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.751 and 106.553.
Comment: Pair above 20MA & 55MA and RSI above 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
AUD/USD Intraday: Break resistance level
Our pivot point is at 0.68820
Preferable Price Action: Long positions above pivot with targets at 0.69332 & 0.69580 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.68283 & 0.68025 as targets.
Comment: MACD in the positive zone and RSI above 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
CRUDEOIL Intraday: Trend may reverse from here
Our pivot point is at 41.20
Preferable Price Action: Sell crude below pivot with targets at 39.80 and 39.20 in extension.
Alternative Price Action: Above pivots buy Oil with 42.67 & 43.22 as targets.
Comment: Crude below its 20MA and MACD in positive zone
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
XAU/USD Intraday: Trend upside
Our pivot point is at 1745.70
Preferable Price Action: Further upside to 1757.08 & 1762.36 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1733.89 and 1728.55.
Comment: RSI above 50 level mark and price above 20MA & 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
Dow Jones Intraday: Strong trend on upside
Our pivot point is at 25680.00
Preferable Price Action: Take buy positions above pivot with targets at 26306.29 & 26556.12 in extension.
Alternative Price Action: Below 25680.00 looks for further downside to 25063.86 & 24814.55.
Comment: Price above 20MA & 55MA and MACD in positive zone.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced7