Market Wrap: Stocks, Bonds, Commodities
US stock indices soared on Wednesday, the Dow Jones and the S&P 500 surging more than 4% after former Vice President Joe Biden’s strong showing in the Super Tuesday Democratic primary contests injected confidence.
The Dow Jones Industrial Average advanced 1,173 points (4.50%) to 27,090, the S&P 500 rose 126 points (4.22%) to 3,130 and the Nasdaq Composite added 334 points (3.85%) to 9,018.
Asian stock indices are looking to rise for a fourth straight day on Thursday as American markets rose sharply and another dose of central bank stimulus offered some relief for the global economic outlook.
Japan’s Nikkei rose 1.25% and hard-hit Australian shares finally managed a bounce of 1.10%. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 1.30% to 664 level.
European stocks were down on Monday, with the Stoxx Europe 50 Index rose 1.44% to 3,420, Germany’s DAX advanced 1.08% to 11,985 and France’s CAC higher 1.12% to 5,393 and U.K.’s FTSE 100 rose 0.95% to 6,718.
Benchmark 10-year U.S. bond down as demand for a risky asset grow, today Yield up 2.14% to 1.013.
Crude oil prices ended lower, gave up early gains as major oil producers, including Saudi Arabia, struggled to bring Russia on board for deeper supply cuts to try to offset a slump in demand caused by the coronavirus outbreak.
Brent crude up 1.50% at $51.90 per barrel, while US West Texas Intermediate (WTI) crude advanced 1.30% to $47.47 per barrel.
The rally in gold paused Wednesday, with stocks jumping instead after former Vice President Joe Biden notched big primary wins over Sen. Bernie Sanders.
Market Wrap: Forex
The U.S. dollar found its footing on Thursday as upbeat jobs data helped it recover a little of its slide against the euro.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, flat to 97.300.
The safe-haven yen also handed back a fraction of recent gains, as the resurgence of moderate Joe Biden in the Democratic Party primaries lifted investors’ risk appetite.
The Australian and New Zealand dollars, heavily sold as the virus’ outbreak widened, halted a nascent advance on the greenback
The Canadian dollar was slightly weaker against its U.S. counterpart after the Bank of Canada delivered its biggest interest rate cut in more than 10 years – though since the move mirrored the Fed, the reaction was muted.
The British pound rose against the dollar and the euro after the incoming Bank of England governor said he would wait for more clarity about the virus before moving interest rates, rather than rushing to an emergency cut.
EUR/USD Intraday: Trend upside continues
Our pivot point is at 1.11613
Preferable Price Action: Take long positions above pivot level with targets at 1.11613 & 1.11919 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.10245 & 1.09870.
Comment: Pair in consolidation zone from last 3 days.
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 Previous Resistance
Our pivot point is at 1.28426
Preferable Price Action: Long positions above pivot with targets at 1.28972 & 1.29205 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.27985 and 1.27730.
Comment: The RSI indicator above 50 level mark and pair above its 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
JPY/USD Intraday: Downtrend Continues
Our pivot point is at 107.772
Preferable Price Action: Short position below 107.772 with the target at 106.911 and 106.557 in extension.
Alternative Price Action: The upside breakout of pivot would call for 108.219 and 108.490.
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
AUD/USD Intraday: Uptrend Continues
Our pivot point is at 0.66063
Preferable Price Action: Long positions above pivot with targets at 0.66487 & 0.66702 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.65707 & 0.65439 as targets.
Comment: pair 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
CRUDEOIL Intraday: Intraday Support at 46.80
Our pivot point is at 46.80
Preferable Price Action: Buy above pivot with targets at 48.37 and 49.04 in extension.
Alternative Price Action: Below pivots sell Oil with 45.77 & 44.92 as targets.
Comment: Price in the consolidation zone from last 3 day.
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: Bias Remain Bullish
Our pivot point is at 1631.77
Preferable Price Action: Further upside to 1649.18 & 1657.05 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1614.69 and 1601.46.
Comment: MACD in positive territory and pair above its 55MA and 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: Rose nearly 4% on Wednesday.
Our pivot point is at 26,493
Preferable Price Action: Take long positions above pivot with targets at 27,041 & 27,306 in extension.
Alternative Price Action: Below 26,493 looks for further downside to 26,042 & 25,702.
Comment: Pair is trading above its 20MA and MACD in positive territory 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