Market Wrap: Stocks, Bonds, Commodities
U.S. stocks rose in a late-day rally on Thursday as investors bought stocks likely to do well in the recovery and picked up beaten-down Apple and Tesla shares in anticipation that the U.S. economy grows at its fastest pace in decades this year.
The Dow Jones Industrial Average rose 199.42 points (0.62%) to 32,619.48. The S&P 500 gained 20.38 points (0.52%) to 3,909.52 and the Nasdaq Composite added 15.79 points (0.12%) to 12,977.68.
Asian shares bounced back from a three-month low on Friday thanks to a late-day rally on Wall Street as optimism about the global economic recovery was overshadowed by rising tensions between the West and China.
MSCI’s index of Asia-Pacific stocks outside Japan rose 1.50% to 861.59 levels. Australian index rose 0.49% to 6,824.20. Japanese Nikkei traded 1.56% higher to 29,176.70.
European stocks were advance on Thursday, with the Stoxx Europe 50 Index gained 0.40% to 3,835.25, Germany’s DAX rose 0.05% to 14,544.60 and France’s CAC higher 0.41% to 6,014.14 and U.K.’s FTSE 100 advance 0.15% to 6,736.00.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield jumped 1.98% to 1.646.
Oil prices bounced back on Friday from a plunge a day earlier on concerns that a large container ship that ran aground in the Suez Canal may block the vital shipping lane for weeks, squeezing supply.
Spot Brent crude oil gained 1.66% to $63.00 per barrel. US West Texas Intermediate crude rose 1.95% to $59.70 a barrel.
The yellow metal traded 0.05% higher to 1727.65 dollars per ounce.
Market Wrap: Forex
The dollar traded near multi-month highs against most major currencies on Friday, supported by a wave of optimism over improving U.S. economic data, the rollout of coronavirus vaccines, and rising Treasury yields.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lost 0.05% to 92.773.
The Euro US Dollar (EUR/USD) widely traded pair gained 0.17% today. This left the pairing trading around $1.17840.
The Japanese yen fell against the U.S. dollar on Friday as stock pushes higher. Today US/JPY rose 0.11% to 109.280 level.
Other commodity-related currency higher against U.S dollar, AUD/USD up 0.60% to 0.76240 and NZD/USD rose 0.42% to 0.69780.
EUR/USD Intraday: Strong Trend downside
Our pivot point is at 1.18050
Preferable Price Action: Take Short positions below pivot level with targets at 1.17680 & 1.17480 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.18430 & 1.18630.
Comment: Pair 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
GBP/USD Intraday: Trend upside
Our pivot point is at 1.37200
Preferable Price Action: Buy positions above pivot with targets at 1.37750 & 1.38000 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.36680 & 1.36430.
Comment: Price is above its 55MA and RSI at 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
USD/JPY Intraday: Bias on the upside
Our pivot point is at 109.070
Preferable Price Action: Buy position above with the target at 109.400 and 109.550 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.730 and 108.580.
Comment: price above 20MA & 50MA 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: Support at 0.75890
Our pivot point is at 0.75890
Preferable Price Action: Buy Positions above pivot with targets at 0.76480 & 0.76740 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.75280 & 0.75020 as targets.
Comment: Pair above its 20MA & 55MA and RSI at overbought 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: Support at 59.00
Our pivot point is at 59.00
Preferable Price Action: Above pivots buy Oil with 60.30 & 61.00 as targets.
Alternative Price Action: Sell crude below pivot with targets at 57.70 and 57.00 in extension.
Comment: Crude above its 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
XAU/USD Intraday: In consolidation zone
Our pivot point is at 1733.00
Preferable Price Action: Further downside to 1722.70 & 1717.50.
Alternative Price Action: If the price gives a pivot upside breakout, then the price extends to 1743.40 and 1748.70.
Comment: MACD in negative territory and price below 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: Trend on the upside
Our pivot point is 32,580.00
Preferable Price Action: Take buy positions above pivot with targets at 32,830.00 & 32,950.00.
Alternative Price Action: Below 32,580.00 looks for further downside to 32,330.00 & 32,210.00.
Comment: Price above its 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 produced7