Market Wrap: Stocks, Bonds, Commodities
US stocks rose on Wednesday, with the S&P 500 closing above 3,000 for the first time since March 5, as the further easing of lockdowns lifted optimism for an economic recovery.
Asian shares are likely to dip on Thursday after remarks by U.S. Secretary of State Mike Pompeo that Hong Kong no longer warranted special treatment under US law reignited worries about worsening relations with Beijing.
MSCI’s index of Asia-Pacific stocks outside Japan down 0.22% to 597.50 levels. Australian index gained 1.32% to 5,851.10. Japan’s Nikkei led the way with a rise of 2.32% with help of $1 trillion stimulus.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index rose 1.73% to 3,051.08, Germany’s DAX gains 1.33% to 11,657.69 and France’s CAC advanced 1.26% to 4,688.74 and U.K.’s FTSE higher 1.26% to 6,144.25.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield rose 2.17% to 0.692.
Oil prices fell in early trade on Thursday after U.S. crude, gasoline and heating oil inventories all rose more than expected, dousing hopes of a smooth recovery in demand from coronavirus lockdowns.
The decline extended losses from Wednesday on uncertainty about Russia’s commitment to deep oil production cuts in the lead-up to a June 9 meeting of the Organization of the Petroleum Exporting Countries and its allies, dubbed OPEC+.
Spot Brent crude oil down 1.50% to $34.23 per barrel. US West Texas Intermediate crude futures were plunged 2.41% to $32.02 a barrel.
Today, gold prices advanced 0.50% to $1719.20 per ounce.
Market Wrap: Forex
The dollar held its own on Thursday as rising Sino-U.S. tension put crushing pressure on the Chinese yuan and proved a counterweight to optimism about the coronavirus recovery.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.20% to 98.860
The Euro US Dollar (EUR/USD) widely traded pair gain by 0.18% today. This left the pairing trading around $1.10230. The pound advances 0.16% to 1.22700.
The escalating war of words between the world’s two biggest economies also spilled over to the Australian and New Zealand dollars, as a far more cautious mood holds in currency markets compared with the ebullience rallying stocks.
The Japanese yen rose against the U.S. dollar on Friday as demand for safe currency rose. Today US/JPY flat to 107.810.
EUR/USD Intraday: Trend Upside
Our pivot point is at 1.10000
Preferable Price Action: Take Long positions above pivot level with targets at 1.10401 & 1.10597 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.09594 & 1.09393.
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
GBP/USD Intraday: Bias on the upside
Our pivot point is at 1.22450
Preferable Price Action: Long positions above pivot with targets at 1.23001 & 1.23300 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.21901 & 1.21609.
Comment: MACD in the negative zone and pair 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
JPY/USD Intraday: Bias on the upside
Our pivot point is at 107.700
Preferable Price Action: Long position above pivot with the target at 107.950 and 108.101 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.444 and 107.294.
Comment: Pair above 55MA & 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
AUD/USD Intraday: Resistance at 0.66350
Our pivot point is at 0.66350
Preferable Price Action: Short positions below pivot with targets at 0.66012 & 0.65796 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.66672 & 0.66880 as targets.
Comment: MACD in the negative zone 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
CRUDEOIL Intraday: supply area near 32.60
Our pivot point is at 32.60
Preferable Price Action: Sell crude below pivot with targets at 31.40 and 30.80 in extension.
Alternative Price Action: Above pivots buy Oil with 33.77 & 34.34 as targets.
Comment: MACD in the negative zone and price below 20MA and 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
XAU/USD Intraday: Bias on the upside
Our pivot point is at 1712.00
Preferable Price Action: Further upside to 1724.55 & 1730.51 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1699.77 and 1693.81.
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: Trend upside
Our pivot point is at 25550.00
Preferable Price Action: Take buy positions above pivot with targets at 25903.29 & 26103.84 in extension.
Alternative Price Action: Below 25550.00 looks for further downside to 25192.88 & 24986.90.
Comment: Index above 20MA & 55MA and also 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 produced7