Market Wrap: Stocks, Bonds, Commodities
Global shares edged lower on Tuesday, as new coronavirus outbreaks in Asia vied with the strong US and European consumer confidence, and investors speculated about whether the Federal Reserve would accelerate its timetable to end the easy monetary policy.
The Dow Jones Industrial Average rose 20.24 points, or 0.06%, to 34,303.51, the S&P 500 gained 2.05 points, or 0.05%, to 4,292.66 and the Nasdaq Composite added 28.67 points, or 0.2%, to 14,529.17.
Asian shares rose and a gauge of global equities hovered near record highs on Wednesday after rising consumer confidence in economic recovery boosted the Nasdaq index to its highest-ever closing level.
MSCI’s index of Asia-Pacific stocks outside Japan flat to 888.90 levels. Australian index rose 0.16% to 7,313.20. Japanese Nikkei traded lower 0.07% to 28,791.50.
European stocks were higher on Tuesday, with the Stoxx Europe 50 Index gained 0.35% to 4,103.80, Germany’s DAX rose 0.63% to 15,651.60, and France’s CAC up 0.28% to 6,576.55, and U.K.’s FTSE 100 flat to 7,078.50.
Benchmark 10-year U.S. Treasury rose as demand for safe risk grows again, today 10-year bond yields gained 0.589% to 1.487.
Oil closed higher with OPEC+ ministers divided ahead of a key meeting later this week on production policy.
Spot Brent crude oil rose 0.12% to $74.37 per barrel. US West Texas Intermediate crude advance 0.37% to $73.22 a barrel.
The yellow metal slipped 0.39% to 1756.50 dollars per ounce.
Market Wrap: Forex
The U.S. dollar rose to a one-week peak on Tuesday, posting its largest single daily gain in roughly two weeks, as new coronavirus outbreaks threatened to derail a global economic recovery, with the Australian and New Zealand dollars leading losses.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, advanced 0.11% to 92.132.
The Euro US Dollar (EUR/USD) is a widely traded pair that slipped 0.05% today. This left the pairing trading around $1.18860.
The Japanese yen gained against the U.S. dollar on Wednesday as the stock pushes higher. Today US/JPY flat to 110.440 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD fell 0.15% to 0.74990, and NZD/USD slipped 0.11% to 0.69800.
EUR/USD Intraday: Break support level
Our pivot point is at 1.19210
Preferable Price Action: Take short positions below pivot level with targets at 1.18820 & 1.18620 in extension.
Alternative Price Action: Above pivot looks for a further upside to 1.19630 & 1.19840.
Comment: Pair 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
GBP/USD Intraday: Resistance at 1.38720
Our pivot point is at 1.38720
Preferable Price Action: Sell positions below pivot with targets at 1.38130 & 1.37780 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.39410 & 1.39770.
Comment: Price below its 55MA & 20MA and RSI beow 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: In a consolidation zone
Our pivot point is at 110.430
Preferable Price Action: Buy position above pivot with the target at 110.740 and 110.920 in extension.
Alternative Price Action: The downside breakout of pivot would call for 110.130 and 109.960.
Comment: price above its 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: Trend may reverse to upside
Our pivot point is at 0.75140
Preferable Price Action: Buy Positions above pivot with targets at 0.75510 & 0.75740 in extension.
Alternative Price Action: Below pivot looks for a further downside with 0.74770 & 0.74560 as targets.
Comment: Pair above its 20MA 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: In a consolidation zone
Our pivot point is at 72.73
Preferable Price Action: Above pivots buy Oil with 74.03 & 74.93 as targets.
Alternative Price Action: Sell crude below pivot with targets at 71.38 and 70.48 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 1764.80
Preferable Price Action: Further downside to 1752.70 & 1745.90.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1775.60 and 1782.40.
Comment: MACD in negative territory and price below its 20MA & 50MA.
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 may reverse
Our pivot point is 34,399.00
Preferable Price Action: Take Sell positions below pivot with targets at 34,232.00 & 34,146.00.
Alternative Price Action: Below 34,399.00 looks for further upside to 34,566.00 & 34,654.00.
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 produced