Market Wrap: Stocks, Bonds, Commodities
U.S. stocks advanced slightly on Thursday, as data showing improvement in the labor market helped bolster expectations in the economic recovery and spurred a minor rotation towards stocks seen as more likely to benefit from the rebound.
The Dow Jones Industrial Average rose 141.59 points (0.41%) to 34,464.64, the S&P 500 gained 4.89 points (0.12%) to 4,200.88 and the Nasdaq Composite flat to 13,736.28.
Asian stocks put global equities on course for the seventh day of gains on Friday as investors bet the U.S. will lead the world out of the COVID-19 pandemic, with the focus turning to a multi-trillion-dollar spending boost by the Biden administration.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.35% to 884.20 levels. Australian index jumped 1.19%to 7,179.50. Japanese Nikkei traded 2.13% higher to 29,158.50.
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 rose 0.19% to 1.613.
Oil prices pushed higher on Friday, supported by firm U.S. economic data and expectations of a strong rebound in global fuel demand in the third quarter, while concerns eased about the impact of any return of Iranian supplies.
Spot Brent crude oil flat to $69.20 per barrel. US West Texas Intermediate crude rose 0.12% to $66.93 a barrel.
The yellow metal traded 0.31% lower to 1889.40 dollars per ounce.
Market Wrap: Forex
The dollar index traded in a narrow range on Thursday as the greenback held steady against the euro, lost ground to the British pound and Canadian dollar, and gained on the Japanese yen.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, advanced 0.20% to 90.140
The Euro US Dollar (EUR/USD) is a widely traded pair that lost 0.13% today. This left the pairing trading around $1.21740
The Japanese yen fell against the U.S. dollar on Friday as the stock pushes higher. Today US/JPY up 0.09% to 109.880 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD lost 0.26% to 0.77210, and NZD/USD slipped 0.59% to 0.72460.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.21960
Preferable Price Action: Take short positions below pivot level with targets at 1.21580 & 1.21350 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.22330 & 1.22580.
Comment: Pair below its 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: Break resistance level
Our pivot point is at 1.41680
Preferable Price Action: Buy positions above pivot with targets at 1.42000 & 1.42200 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.41360 & 1.41160.
Comment: Price 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: Trend on the upside
Our pivot point is at 109.700
Preferable Price Action: Buy position above with the target at 110.070 and 110.300 in extension.
Alternative Price Action: The downside breakout of pivot would call for 109.330 and 109.100.
Comment: price above its 55MA & 20MA 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: Resistance at 0.77480
Our pivot point is at 0.77480
Preferable Price Action: Sell Positions below pivot with targets at 0.77000 & 0.76800 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77940 & 0.78140 as targets.
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
CRUDEOIL Intraday: Trend on the upside
Our pivot point is at 66.55
Preferable Price Action: Above pivots buy Oil with 67.15 & 67.55 as targets.
Alternative Price Action: Sell crude below pivot with targets at 65.95 and 65.55 in extension.
Comment: Crude is above its 55MA and MACD in the 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: Break support level
Our pivot point is 1896.70
Preferable Price Action: Further downside to 1885.50 & 1880.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1907.50 and 1913.00.
Comment: MACD in negative territory and price below 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 resistance level
Our pivot point is 34,520.00
Preferable Price Action: Take buy positions above pivot with targets at 34,650.00 & 34,710.00.
Alternative Price Action: Below 34,520.00 looks for further downside to 34,390.00 & 34,330.00.
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