Market Wrap: Stocks, Bonds, Commodities
On Wednesday, U.S. stocks rebounded following a sharp sell-off in the prior session. The Dow Jones Industrial Average rose 127 points (+0.39%) to 33,129, the S&P 500 climbed 34 points (+0.81%) to 4,263, and the Nasdaq 100 jumped 210 points (+1.45%) to 14,776.
The ADP jobs report showed that the U.S. economy added only 89,000 private jobs in September (vs +160,000 expected).
The Institute for Supply Management (ISM) services index dropped to 53.6 in September (vs 53.7 expected), while factory orders grew 1.2% on month in August (vs +0.3% expected).
The U.S. 10-year Treasury yield retreated 6.5 basis points to 4.731%.
Automobiles (+4.98%), software & services (+1.7%), and media (+1.48%) stock sectors gained the most, while energy (-3.36%) and telecoms services (-0.62%) sectors were under pressure.
Tesla (TSLA) rebounded 5.93%, and Rivian Automotive (RIVN) jumped 9.22%.
Carnival (CCL) rose 2.75%.
RPM International (RPM), a maker of specialty chemical products, gained 6.26% on upbeat first-quarter results.
On the other hand, energy stocks were weighed down by falling oil prices. Marathon Oil (MRO) dropped 4.98%, and Occidental Petroleum (OXY) slid 3.87%.
European stock markets closed mixed. The DAX 40 added 0.10%, while the CAC 40 closed flat, and the FTSE 100 was down 0.77%.
Oil prices fell sharply on signs that fuel demand in the U.S. declined. U.S. WTI crude futures plunged $5.01 (-5.60%) to $84.22 a barrel, and Brent crude futures sank $5.11 (-5.60%) to $85.81 a barrel.
The U.S. Energy Department reported that crude-oil stockpiles dropped 2.22 million barrels (vs -0.45 million barrels expected), but gasoline stockpiles surged 6.5 million barrels (vs +0.16 million barrels expected).
Gold price dipped a further $2 to $1,820 an ounce.
Market Wrap: Forex
The U.S. dollar softened against other major currencies. The dollar index eased to 106.76.
EUR/USD gained 39 pips to 1.0506. In the Eurozone, retail sales declined 1.2% on month in August (vs -0.1% expected), while producer prices fell 11.5% on year in August (vs -11.6% expected).
USD/JPY added 9 pips to 149.11. Market participants reported that there were no signs of Japanese authorities intervening in the forex market.
GBP/USD climbed 62 pips to 1.2139.
AUD/USD increased 24 pips to 0.6326. This morning, Australia's data showed that trade surplus widened to A$9.64 billion in August (vs A$8.50 billion expected).
USD/CHF fell 40 pips to 0.9170.
The Canadian dollar was dragged by plunging oil prices. USD/CAD climbed 36 pips to reach 1.3744.
Bitcoin gained 1.3% to $27,780.
EUR/USD Intraday: bullish bias above 1.0480.
Pivot:
1.0480
Our preference:
Long positions above 1.0480 with targets at 1.0530 & 1.0545 in extension.
Alternative scenario:
Below 1.0480 look for further downside with 1.0465 & 1.0450 as targets.
Comment:
The RSI calls for a bounce.
GBP/USD Intraday: the bias remains bullish.
Pivot:
1.2105
Our preference:
Long positions above 1.2105 with targets at 1.2160 & 1.2175 in extension.
Alternative scenario:
Below 1.2105 look for further downside with 1.2090 & 1.2070 as targets.
Comment:
Technically the RSI is above its neutrality area at 50.
USD/JPY Intraday: choppy.
Pivot:
149.30
Our preference:
Short positions below 149.30 with targets at 148.70 & 148.50 in extension.
Alternative scenario:
Above 149.30 look for further upside with 149.50 & 149.70 as targets.
Comment:
As long as 149.30 is resistance, look for choppy price action with a bearish bias.
Crude Oil (WTI) (X3) Intraday: the downside prevails.
Pivot:
85.50
Our preference:
Short positions below 85.50 with targets at 83.50 & 82.45 in extension.
Alternative scenario:
Above 85.50 look for further upside with 86.90 & 87.80 as targets.
Comment:
The RSI has broken down its 30 level.
Gold Intraday: intraday support around 1815.00.
Pivot:
1815.00
Our preference:
Long positions above 1815.00 with targets at 1827.00 & 1833.00 in extension.
Alternative scenario:
Below 1815.00 look for further downside with 1810.00 & 1805.00 as targets.
Comment:
A support base at 1815.00 has formed and has allowed for a temporary stabilisation.
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