Market Wrap: Stocks, Bonds, Commodities
The S&P 500 ended marginally lower on Thursday after a report that an experimental antiviral drug for the coronavirus flopped in its first randomized clinical trial, denting optimism that the pandemic’s impact on the labour market was nearing an end.
The US House of Representatives overwhelmingly approved a $484 billion coronavirus relief bill on Thursday, funding small businesses and hospitals and pushing the total spending response to the crisis to an unprecedented near $3 trillion.
The Dow Jones Industrial Average higher 0.19% to end at 23,516.20, while the S&P 500 flat to 2,797.8 level. The Nasdaq Composite declined 0.10% to 8,495.20.
Asian markets declined after an overnight report raised doubts over a potential coronavirus treatment. U.K. consumer confidence held at the lowest in more than a decade as stores close and shoppers are told to stay indoors to prevent the spread of coronavirus
MSCI’s index of Asia-Pacific stocks outside Japan dropped 0.95% to 584.50 levels. Australian index rose 0.49% to 5,242.60. Japan Nikkei down 0.86% to 19,262.
European stocks were mixed on Thursday, with the Stoxx Europe 50 Index gained 0.62% to 2,852.46, Germany’s DAX up 0.96% to 10,513.80 and France’s CAC rose 0.89% to 4,451 and U.K.’s FTSE 100 advanced 0.97% to 5,826.61.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield lost 4.75% to 0.582.
Oil prices rose on Friday, gaining further ground as some producers like Kuwait said they would move to cut output swiftly to try to counter the evaporation in global demand for fuels caused by the coronavirus pandemic.
Brent crude oil rose 2.10% to $24.750 per barrel. while US West Texas Intermediate (WTI) crude up 1% to $18.30 per barrel.
Today, Yellow metal higher 0.43% to $1730 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.20% to 100.730.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.15% today. This left the pairing trading around $1.07630.
The Japanese yen down against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY higher 0.10% to 107.610 level.
Other commodity-related currency broadly lower against U.S dollar, AUD/USD down 0.35% to 0.63490 and NZD/USD fell 0.30% to 0.59880.
EUR/USD Intraday: In consolidation zone
Our pivot point is at 1.07450
Preferable Price Action: Take long positions above pivot level with targets at 1.07923 & 1.08222 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.07024 & 1.06739.
Comment: pair above 20MA and MACD in negative 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
GBP/USD Intraday: Bias downside
Our pivot point is at 1.23650
Preferable Price Action: Short positions below pivot with targets at 1.22963 & 1.22658 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.24255 & 1.24556.
Comment: The RSI indicator above 50 levels and pair above 50MA & 20MA.
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
JPY/USD Intraday: In a consolidation zone
Our pivot point is at 107.750
Preferable Price Action: Short position below pivot with the target at 107.361 and 107.056 in extension.
Alternative Price Action: The upside breakout of pivot would call for 108.121 and 108.400.
Comment: Pair above 20MA & 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
AUD/USD Intraday: Bias on the upside
Our pivot point is at 0.63300
Preferable Price Action: Long positions above pivot with targets at 0.63806 & 0.64088 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.62814 & 0.62520 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: May trend reverse
Our pivot point is at 17.05
Preferable Price Action: Buy crude above pivot with targets at 19.40 and 20.96 in extension.
Alternative Price Action: Below pivots sell Oil with 14.64 & 13.12 as targets.
Comment: MACD in the positive zone and RSI above 50 level mark.
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: Support at $1720
Our pivot point is at 1720.00
Preferable Price Action: Further upside to 1737.77 & 1747.76 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1703.39 and 1692.53.
Comment: RSI above 50 level mark and price above 20&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: Support at 23,350
Our pivot point is at 23350.00
Preferable Price Action: Take buy positions above pivot with targets at 23,727.44 & 24,003.07 in extension.
Alternative Price Action: Below 23,350.00 looks for further downside to 22,974.47 & 22,714.94.
Comment: Index above 20MA & 55MA and also MACD in positive side.
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