Market Wrap: Stocks, Bonds, Commodities
American major stock indices tumbled on Wednesday, with the Dow closing at lows last seen in late July, as coronavirus cases soared globally and traders worried about the possibility of a contested U.S. presidential election next week.
The Dow Jones Industrial Average fell 943.24 points (3.43%) to 26,519.95, the S&P 500 lost 119.65 points (3.53%) to 3,271.03 and the Nasdaq Composite dropped 426.48 points (3.73%) to 11,004.87.
Asian stocks set to join a global sell-off on Thursday as worries about surging coronavirus cases in Europe and the United States sent Traders scrambling for safe-haven assets.
MSCI’s index of Asia-Pacific stocks outside Japan down 0.26% to 742.50 levels. Australian index plunged 1.61% to 5,960.30. Japanese Nikkei fell 0.37% to 23,331.94.
European stocks were tumbled on Wednesday, with the Stoxx Europe 50 Index fell 3.49% to 2,963.54, Germany’s DAX down 4.17% to 11,560.51 and France’s CAC lost 3.37% to 4,571.12 and U.K.’s FTSE 100 slipped 2.55% to 5,582.80.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 0.42% to 0.778.
Oil prices fell more than 5% on Wednesday, sending Brent to a four-month low as surging coronavirus infections in the United States and Europe prompted renewed lockdowns and fed expectations for new declines in fuel demand.
Spot Brent crude Oil down 0.43% to $39.45 per barrel. US West Texas Intermediate crude fell 0.43% to $37.23 a barrel.
The yellow metal traded 0.14% higher to 1881.70 dollars per ounce.
Market Wrap: Forex
The dollar held gains against a basket of major currencies on Thursday as escalating coronavirus cases in Europe stoked fears across markets that fresh lockdowns would further hit the already fragile economic recovery.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, flat to 93.108.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.05% today. This left the pairing trading around $1.17500.
The Japanese yen rose against the U.S. dollar on Thursday as stock pushes lower. Today US/JPY down 0.10% to 104.280 level.
Other commodity related currency higher against U.S dollar, AUD/USD gained 0.25% to 0.70620 and NZD/USD rose 0.26% to 0.66530.
EUR/USD Intraday: Bias on upside
Our pivot point is at 1.17440
Preferable Price Action: Take Long positions above level with targets at 1.17710 & 1.17860 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17190 & 1.17050.
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
GBP/USD Intraday: Support at 1.30030
Our pivot point is at 1.30030
Preferable Price Action: Long positions above pivot with targets at 1.30350 & 1.30600 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.29700 & 1.29450.
Comment: Price 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
USD/JPY Intraday: Resistance at 104.500
Our pivot point is at 104.500
Preferable Price Action: Short position below pivot with the target at 104.200 and 104.000 in extension.
Alternative Price Action: The upside breakout of pivot would call for 104.800 and 105.000.
Comment: price below 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: Temporary pullback
Our pivot point is at 0.70580
Preferable Price Action: Long positions above pivot with targets at 0.70900 & 0.71100 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.70280 & 0.70080 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: Trend on downside
Our pivot point is at 38.10
Preferable Price Action: Sell crude below pivot with targets at 37.30 and 36.90 in extension.
Alternative Price Action: Above pivots buy Oil with 38.90 & 39.30 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: Break support level
Our pivot point is at 1890.00
Preferable Price Action: Further downside to 1875.80 & 1868.00 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1904.00 and 1911.50.
Comment: MACD in negative territory and price below its 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: Trend on downside
Our pivot point is at 26,650.00
Preferable Price Action: Take buy positions above pivot with targets at 26,960.00 & 27,160.00 in extension.
Alternative Price Action: Below 26,650.00 looks for further downside to 26,380.00 & 26,190.00.
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 produced7