Market Wrap: Stocks, Bonds, Commodities
US stocks rose on Monday as President Donald Trump followed last week’s massive fiscal stimulus package by extending his stay-at-home guidelines, leaving investors to await more signs on the next stages of a deepening economic crisis.
Dow Jones Industrial Average was advanced 2.25%, at 22,119.20, the S&P 500 was rose 66.11 points (2.61%) at 2,608.10 and the Nasdaq Composite has soared 220.56 points (2.94%) at 7,723.10.
Major Asian indices able to small bounce back on Tuesday as PMI data from China come better-than-expected that held out the hope of a rebound in economic activity even as other countries across the globe all but shut down.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 1.60% to 548.50 levels. Australian index was down 2.00%, while Japan’s Nikkei stock index slipped 1.20%
European stocks were slipped on Friday, with the Stoxx Europe 50 Index rose 1.35% to 2735.62, Germany’s DAX up 1.90% to 9,815.97 and France’s CAC advanced 0.62% to 4,378.51 and U.K.’s FTSE 100 rose 0.97% to 5,563.74.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield rose 1.20% to 0.679.
Gold prices in Asia were down on Tuesday morning as stock markets gained. Prices of the yellow metal reached $1,645.3 overnight as investors reacted to the United States’ extension of COVID-19 restrictions to April 30 by seeking safe havens
Oil recovered some ground on Tuesday as U.S. President Donald Trump and Russian President Vladimir Putin agreed to discuss stabilizing energy markets, but prices remain near 18-year lows as the coronavirus shutdown destroys demand.
Brent crude oil rose 2.20% at $27.500 per barrel. while US West Texas Intermediate (WTI) crude soared 5.80% to $23.100 per barrel.
Market Wrap: Forex
The U.S dollar index rose on Tuesday as Japanese investors and company hurray for greenbacks on the last day of their fiscal year 2020.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.20% to 99.470.
The Euro US Dollar (EUR/USD) widely traded pair down by 0.36% today. This left the pairing trading around $1.10070.
GBP/USD trading lower 0.62% to 1.23400. However, more downside looks likely for the pound further, after Fitch downgraded its credit rating on the United Kingdom by one notch to AA- from AA on Friday.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD rose 0.34 to 0.61930 and NZD/USD up 0.21% to 0.60250.
EUR/USD Intraday: Resistance at 1.10500
Our pivot point is at 1.10500
Preferable Price Action: Take Short positions below pivot level with targets at 1.09650 & 1.09151 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.11005 & 1.11432.
Comment: pair below 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
GBP/USD Intraday: Bias remains bullish
Our pivot point is at 1.22400
Preferable Price Action: long positions above pivot with targets at 1.23981 & 1.24761 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.21463 and 1.20770.
Comment: The RSI indicator below 50 level
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: Yen weakens further
Our pivot point is at 107.960
Preferable Price Action: Long position above pivot with the target at 108.971 and 109.502 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.254 and 106.771.
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
AUD/USD Intraday: Resistance at 0.62250
Our pivot point is at 0.62250
Preferable Price Action: Short positions below pivot with targets at 0.61197 & 0.60480 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.62909 & 0.63541 as targets.
Comment: Pair below its 20MA and RSI at 50 levels mark.
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 may change
Our pivot point is at 20.40
Preferable Price Action: Buy above pivot with targets at 21.81 and 22.79 in extension.
Alternative Price Action: Below pivots sell Oil with 19.22 & 18.29 as targets.
Comment: MACD in the positive zone and pair above 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
XAU/USD Intraday: Gold in consolidation zone
Our pivot point is at 1610.00
Preferable Price Action: Further upside to 1640.42 & 1663.49 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1583.01 and 1563.27.
Comment: Trading in a narrow range from the last one week
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: Bias on upside
Our pivot point is at 21920.00
Preferable Price Action: Take Long positions above pivot with targets at 22816.76 & 23217.82 in extension.
Alternative Price Action: Below 21920.00 looks for further downside to 21430.88 & 21083.30.
Comment: Index above its 20MA & 55MA and RSi above 50 level mark.
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