Market Wrap: Stocks, Bonds, Commodities
Wall Street’s main indices tumbled on Thursday, with the Nasdaq index posting its largest daily percentage fall in four months, as technology-related stocks remained under pressure following a rise in U.S. bond yields.
The Dow Jones Industrial Average closed 559.85 points lower (1.75%) to 31,402.01, the S&P 500 lost 96.09 points (2.45%) to 3,829.34 and the Nasdaq Composite dropped 478.54 points (3.52%) to 13,119.43.
Asian stocks opened sharply lower on Friday after Wall Street’s main indexes tumbled, with technology-related stocks under pressure following a steep rise in benchmark U.S. Treasury yields.
MSCI’s index of Asia-Pacific stocks outside Japan plunged 3.16% to 889.20 levels. Australian index slump 2.35% to 6,673.30. Japanese Nikkei traded 3.99% lower to 28,966.10.
European stocks were decline on Friday, with the Stoxx Europe 50 Index slipped 0.35% to 3,675.07, Germany’s DAX flat to 13,878.50 and France’s CAC lower 0.37% to 5,763.06 and U.K.’s FTSE 100 lost 0.20% to 6,638.35.
Benchmark 10-year U.S. Treasury advance as demand for risky asset grow again, today 10-year bond yield fell 3.20% to 1.467.
Oil prices were mixed on Thursday with U.S. crude edging up to its highest close since 2019 as Texas refineries restarted production after last week’s freeze, while Brent eased on worries that four months of gains will prompt producers to boost output.
Spot Brent crude oil fell 0.86% to $63.04 per barrel. US West Texas Intermediate crude lost 0.80% to $65.57 a barrel.
Gold steadied after posting four straight days of losses as Treasury yields held near their highest in a year on expectations that the economy is recovering from the pandemic’s impact.
The yellow metal traded 0.55% lower to 1767.27 dollars per ounce.
Market Wrap: Forex
The U.S. dollar touched a fresh six-month high versus the yen and extended a rebound from a three-year low to the Aussie on Thursday, lifted by a sharp increase in U.S. bond yields overnight.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.29% to 90.398.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.24% today. This left the pairing trading around $1.21470.
The Japanese yen rose against the U.S. dollar on Friday as stock pushes lower. Today US/JPY down 0.10% to 106.120 level.
Other commodity-related currency lower against the U.S dollar, AUD/USD down 0.48% to 0.78340 and NZD/USD fell 0.20% to 0.73570.
EUR/USD Intraday: Break support levels
Our pivot point is at 1.21760
Preferable Price Action: Take Short positions below pivot level with targets at 1.21380 & 1.21180 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.22140 & 1.22340.
Comment: Pair below its 20MA & 55MA and RSI below 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: Trend on the downside
Our pivot point is at 1.39960
Preferable Price Action: Sell positions below pivot with targets at 1.39050 & 1.38600 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.40850 & 1.41300.
Comment: Price below its 55MA & 20MA and RSI at oversold 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
USD/JPY Intraday: Support at 106.000
Our pivot point is at 106.00
Preferable Price Action: Buy position above with the target at 106.350 and 106.550 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.630 and 105.430.
Comment: price 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: Trend on the downside
Our pivot point is at 0.79700
Preferable Price Action: Sell Positions below pivot with targets at 0.78000 & 0.77700 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.79300 & 0.79600 as targets.
Comment: Pair below it’s 20MA & 55MA an RSI at oversold 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: Bias on the downside
Our pivot point is at 63.10
Preferable Price Action: Below pivots sell Oil with 62.10 & 61.50 as targets.
Alternative Price Action: Buy crude above pivot with targets at 64.10 and 64.70 in extension.
Comment: Crude below its 20MA & 55MA 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
XAU/USD Intraday: Price fell continuesly
Our pivot point is at 1772.50
Preferable Price Action: Further downside to 1756.00 & 1748.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1789.00 and 1797.00.
Comment: MACD in negative territory and price below 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: Break support level
Our pivot point is 31,400.00
Preferable Price Action: Take sell positions below pivot with targets at 31,090.00 & 30,890.00.
Alternative Price Action: Above 31,400.00 looks for further upside to 31,700.00 & 31,900.00.
Comment: Price below its 55MA & 20MA and RSI below 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 produced7