Market Wrap: Stocks, Bonds, Commodities
Technology stocks again rode to Wall Street’s rescue on Friday, lifting the main indexes more than 1%, but the Dow and the S&P 500 still posted their longest weekly losing streaks in a year as fears of a slowing economy sparked an almost month-long rout.
The Dow Jones Industrial Average rose 358.52 points (1.34%) to 27,173.96. The S&P 500 gained 51.87 points (1.60%) to 3,298.46 and the Nasdaq Composite added 241.30 points (2.26%) to 10,913.56.
Asian shares were on the defensive, while oil prices edged lower on Monday as investors were cautious ahead of a U.S. Presidential debate and as coronavirus cases spike again in a blow to global economic recovery hopes.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.77% to 702.60 levels. Australian index down 0.21% to 5,952.30. Japanese Nikkei rose 1.32% to 23,511.62.
European stocks were higher on Monday, with the Stoxx Europe 50 Index advance 1.37% to 3,179.50, Germany’s DAX rose 1.59% to 12,670.45 and France’s CAC gained 1.39% to 4,794.92 and U.K.’s FTSE 100 up 1.33% to 5,920.26.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield gained 0.80% to 0.664.
Oil prices dipped again on Monday as rising coronavirus cases upset hopes for a smooth recovery in fuel demand, with crude on track for its first monthly fall in many months after slipping last week.
Spot Brent crude oil slipped 0.83% to $42.06 per barrel. US West Texas Intermediate crude down 0.85% to $39.89 a barrel.
The yellow metal traded 0.10% lower to 1871.20 dollars per ounce.
Market Wrap: Forex
The dollar hovered near a two-month peak against a basket of currencies on Monday, as doubts about recovery persisted ahead of a barrage of economic data and political developments in the United States.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.12% to 94.570.
The Euro US Dollar (EUR/USD) widely traded pair up 0.05% today. This left the pairing trading around $1.16280. GBP/USD higher 0.30% to 1.27820.
The Japanese yen rose against the U.S. dollar on Monday as stock pushes lower. Today US/JPY down 0.18% to 105.390 level.
Other commodity-related currency higher against U.S dollar, AUD/USD gained 0.34% to 0.70500 and NZD/USD rose 0.21% to 0.65560.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.16500
Preferable Price Action: Take Short positions below level with targets at 1.16050 & 1.15800 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.16950 & 1.17200.
Comment: Pair below its 20MA & 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: Bias on the upside
Our pivot point is at 1.27500
Preferable Price Action: Long positions above pivot with targets at 1.27900 & 1.28150 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.27100 & 1.26850.
Comment: Price above 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 produced
USD/JPY Intraday: Resistance at 105.480
Our pivot point is at 105.480
Preferable Price Action: Short position below pivot with the target at 105.100 and 104.850 in extension.
Alternative Price Action: The upside breakout of pivot would call for 105.860 and 106.100.
Comment: price below 55MA & 20MA 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
AUD/USD Intraday: Support at 0.70370
Our pivot point is at 0.70370
Preferable Price Action: Long positions above pivot with targets at 0.70750 & 0.71000 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.70030 & 0.69790 as targets.
Comment: Pair above its 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
CRUDEOIL Intraday: Support at 39.80
Our pivot point is at 39.80
Preferable Price Action: Buy crude above pivot with targets at 40.30 and 40.60 in extension.
Alternative Price Action: Below pivots sell Oil with 39.30 & 39.00 as targets.
Comment: Crude below Its 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: Resistance at 1868.60
Our pivot point is at 1868.60
Preferable Price Action: Further downside to 1852.80 & 1844.50 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1884.60 and 1893.50.
Comment: MACD in negative territory and price below it’s 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 on upside
Our pivot point is at 27230.00
Preferable Price Action: Take buy positions above pivot with targets at 27530.00 & 27700.00 in extension.
Alternative Price Action: Below 27230.00 looks for further downside to 26930.00 & 26750.00.
Comment: Price 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 produced7