Market Wrap: Stocks, Bonds, Commodities
US stocks closed out Wednesday’s session with modest gains as recent comments from Federal Reserve officials helped tamp down concerns about runaway inflation and kept bond yields in check.
Dow Jones Industrial Average flat to 34,308.99, the S&P 500 gained 5.62 points (0.13%) to 4,193.75 and the Nasdaq Composite added 71.22 points (0.52%) to 13,728.40.
Asian shares retreated from two-week highs on Thursday and China started on the backfoot on fears central banks were closer to considering winding back their emergency stimulus while the dollar held at a one-week top.
MSCI’s index of Asia-Pacific stocks outside Japan flat to 881.30 levels. Australian index flat to 7,094.90. Japanese Nikkei traded 0.33% lower to 28,549.10.
European stocks were lower on Thursday, with the Stoxx Europe 50 Index fell 0.32% to 4,025.05, Germany’s DAX lost 0.45% to 15,380.10, and France’s CAC advance 0.10% 6,399.41, and U.K.’s FTSE 100 rose 0.07% to 7,030.74.
Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields slumped 1.07% to 1.581.
Oil prices fell on Thursday but stayed within the tight range set this week, with optimism about the summer driving season in the United States and Europe offsetting concerns on demand in India and a potential increase in Iranian supplies.
Spot Brent crude oil down 0.42% to $68. per barrel. US West Texas Intermediate crude fell 0.44% to $65.93 a barrel.
The yellow metal traded 0.06% lower to 1899.60 dollars per ounce.
Market Wrap: Forex
The dollar found support on Thursday from emerging views the Federal Reserve is slowly but surely edging towards a discussion about tightening monetary policy, and as traders await crucial U.S. inflation data this week.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, lower 0.07% to 89.963.
The Euro US Dollar (EUR/USD) is a widely traded pair that rose 0.12% today. This left the pairing trading around $1.22050
The Japanese yen gained against the U.S. dollar on Thursday as the stock pushes higher. Today US/JPY lost 0.05% to 109.090 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD gained 0.19% to 0.77520, and NZD/USD up 0.32% to 0.73030.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.22120
Preferable Price Action: Take short positions below pivot level with targets at 1.21820 & 1.21610 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.22420 & 1.22610.
Comment: Pair below 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
GBP/USD Intraday: In consolidation zone
Our pivot point is at 1.41000
Preferable Price Action: Buy positions above pivot with targets at 1.41360 & 1.41560 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.40650 & 1.40460.
Comment: Price above its 20MA 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: Support at 109.000
Our pivot point is at 109.000
Preferable Price Action: Buy position above with the target at 109.180 and 109.300 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.820 and 108.700.
Comment: price above its 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: Support at 0.77320
Our pivot point is at 0.77320
Preferable Price Action: Buy Positions above pivot with targets at 0.77650 & 0.77850 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.77000 & 0.76800 as targets.
Comment: Pair above its 20MA 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 on the upside
Our pivot point is at 65.30
Preferable Price Action: Above pivots buy Oil with 66.20 & 66.70 as targets.
Alternative Price Action: Sell crude below pivot with targets at 64.40 and 63.90 in extension.
Comment: Crude is above its 55MA and MACD in the 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: Trend on the upside
Our pivot point is 1894.50
Preferable Price Action: Further upside to 1906.60 & 1912.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1882.60 and 1877.00.
Comment: MACD in positive territory and price above its 55MA & 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
Dow Jones Intraday: Break support level
Our pivot point is 34,360.00
Preferable Price Action: Take sell positions below pivot with targets at 34,240.00 & 34,160.00.
Alternative Price Action: Above 34,360.00 looks for further upside to 34,470.00 & 34,540.00.
Comment: Price below 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 produced7