Crude, Gold, Dow, S&P 500 and Nasdaq
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E-Mini Dow
U.S. services sector activity accelerated in December, beating expectations, while a measure of prices paid for inputs rose to near a two-year high, according to data from the Institute for Supply Management.
(News Source: Channelnewsasia)
Plan A: Sell if market rebounded but resilient to 42,983. Targets around 42,652/42,464.
Plan B: Long only if market supported firm above 42,983. Targets around 43,245/43,411.
E-Mini S&P500
The Dow Jones Industrial Average fell 0.10 per cent, to 42,663.38, the S&P 500 fell 0.74 per cent to 5,931.30 and the Nasdaq Composite fell 1.50 per cent, to 19,566.71.
E-Mini Nasdaq
Benchmark indices on Wall Street faced selling pressure on Tuesday as strong economic data further dampened prospects of rate cuts by the US Federal Reserve, leading to a sell-off in the bond market. A decline in big tech companies also added to the pressure.
The underperforming Dow Jones fell the least among the benchmark indices, declining 0.4%. The S&P 500 fell 1%, while the Nasdaq, which led the gains over Friday and Monday, fell nearly 2%.
Losses were led by Nvidia, which fell over 6% after hitting a record high the previous day. Tesla shares too fell 4% after Bank of America downgraded the stock citing high valuations and risks associated with its strategy. Meta, Apple and Microsoft shares also fell between 1% to 2%. A gauge of these big tech companies fell 2.5%.
Treasuries fell across the curve on Tuesday. A $39 billion sale of 10-year bonds drew the highest yield since 2007. Yield on the 10-year stood at 4.69%, while in the UK, the 30-year yield rose to the highest level since 1998. The US Dollar also saw a rebound after cooling off on Monday, back at levels of 108.7.
Plan A: Consider long if market supported firm above 21,492. Targets are 21, 898/22,113. Place a reasonable stop order based on the assessment of the risk and reward ratio.
Plan B: Short if prices failed to support above 21,492. Targets are 21,280/21,011. Place a reasonable stop order based on the assessment of the risk and reward ratio.
WTI Crude Oil
API data showed a 4.022 million-barrel drop last week, far exceeding the expected 0.25 million-barrel decrease. If confirmed by government data, this would mark the fourth consecutive weekly decline and the seventh in 12 weeks, the longest streak in three years.
Oil prices recently gained support from tighter global supplies due to escalating Western sanctions on Russia and Iran, driving demand for Middle Eastern oil. This was evident in Saudi Arabia's decision to raise oil prices for Asia for the first time in three months.
Additionally, China's Shandong Port Group banned US-sanctioned oil vessels, further straining supply, while colder weather in the US and Europe increased heating oil demand.
(News Source: Tradingeconomics)
Plan A: Long if prices supported around 74.27. Targets are 77.59/79.12.
Plan B: Consider short if market breakout below 74.98. Targets are 74.27/73.19.
Gold
Gold prices were flat around $2,640 per ounce on Wednesday, pressured by a strengthening US dollar and rising Treasury yields. This followed an increase in US job openings, highlighting resilience in the labor market.
Additionally, the latest ISM services data showed an acceleration in activity and a rise in prices, fueling concerns about persistent inflation and reducing expectations for significant rate cuts by the Federal Reserve. This further weighed on gold, as lower interest rates typically benefit the non-yielding metal.
Meanwhile, gold found some support on Tuesday amid uncertainty over the tariff policy ahead of Trump’s inauguration, and the PBoC added gold to its reserves for the second consecutive month, according to official data. Traders are now awaiting further US jobs data, including the nonfarm payroll report, as well as the latest FOMC minutes for additional policy guidance.
Plan A: Consider long if market supported above 2663. Targets at 2682/2697.
Plan B: Short if market prices rebounded but failed to support above 2682. Targets are 2655/2636.
Disclaimer: This information is intended to assist professional investors. News are credit courtesy of Reuters, Nasdaq.com, Bloomberg, CNN, Market Watch, FT.com, the Star online, forbes.com, mining.com and CNBC. The information does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice.As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of the investment.
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