Here are today's directional views from the global research desks of Trading Central! These are starting points for your own research to identify opportunities that make sense for you.
Market Wrap: Stocks, Bonds, Commodities
On Wednesday, U.S. stocks closed lower on the last trading day of May. The Dow Jones Industrial Average fell 134 points (-0.41%) to 32,908, the S&P 500 dropped 25 points (-0.61%) to 4,179, and the Nasdaq 100 slid 100 points (-0.70%) to 14,254.
For the whole month of May, the Dow lost 3.49%. while the S&P 500 added 0.25%, and the Nasdaq 100 jumped 7.61%.
Telecoms services (+1.47%), health-care equipment & services (+1.16%), and utilities (+0.96%) stock sectors were the top performers on Wednesday, while semiconductors (-3.03%), banks (-1.97%), and energy (-1.88%) sectors lost the most.
Tesla (TSLA) advanced a further 1.38% to $203.93 after jumping 4% Tuesday.
Nvidia (NVDA) retreated 5.68% after marking a record close on Tuesday.
Intel (INTC) jumped 4.83%. The chipmaker said second-quarter revenue would be at upper end of its forecast range.
Avis Budget Group (CAR) rose 2.77%. The car rental company was upgraded to "buy" at Deutsche Bank.
Hewlett Packard Enterprise (HPE) fell 7.09%, and HP (HPQ) slid 6.05%. Both companies reported lower-than-expected quarterly sales.
Advance Auto Parts (AAP) plunged 35.04%, as the company lowered its full-year guidance.
The U.S. 10-year Treasury yield retreated a further 4.4 basis points to 3.643%.
Regarding U.S. economic data, the Chicago purchasing managers index sank to 40.4 in May (vs 47.3 expected). The official number of job openings climbed to 10.10 million in April (vs 9.20 million expected).
Meanwhile, Federal Reserve Governor Philip Jefferson said that the central bank could pause interest rate hikes in June.
European stocks closed lower. The DAX 40 fell 1.54%, the CAC 40 slid 1.54%, and the FTSE 100 was down 1.01%.
U.S. WTI crude futures declined $1.50 to $68.00 a barrel.
Gold price added $3 to $1,963 an ounce.
Market Wrap: Forex
The U.S. dollar index remained firm at 104.22.
EUR/USD slid 46 pips to 1.0689. Germany's data showed that the inflation rate slowed to 6.1% on year in May (vs 6.7% expected), and the jobless rate remained stable at 5.6% (as expected).
France's inflation rate cooled down to 5.1% on year in May (vs 5.7% expected), producer prices fell 5.1% on month in May (vs +0.5% expected).
USD/JPY fell 45 pips to 139.34. This morning, Japan's data showed that private enterprises' capital spending increased 11.0% on year in the first quarter (vs +5.5% expected), the fastest growth since 2015..
GBP/USD rose 24 pips to 1.2438.
AUD/USD dipped 15 pips to 0.6502. China's official manufacturing purchasing managers index fell to 48.8 in May, the lowest level in five months.
USD/CHF rose 47 pips to 0.9106.
USD/CAD lost 24 pips to 1.3578. Canada's data showed that gross domestic product grew at an annualized rate of 3.1% in the first quarter (vs +2.1% expected).
Bitcoin traded lower to $27,200.
Gold Intraday: bullish bias above 1957.00
Pivot:
1957.00
Our preference:
Long positions above 1957.00 with targets at 1974.00 & 1980.00 in extension.
Alternative scenario:
Below 1957.00 look for further downside with 1951.00 & 1946.00 as targets.
Comment:
The RSI has just landed on its neutrality area at 50% and is turning up.
Crude Oil (WTI) (N3) Intraday: under pressure.
69.15
Our preference:
Short positions below 69.15 with targets at 67.10 & 66.00 in extension.
Alternative scenario:
Above 69.15 look for further upside with 70.10 & 71.25 as targets.
Comment:
The RSI is below its neutrality area at 50%
EUR/USD Intraday: continuation of the rebound.
1.0665
Our preference:
Long positions above 1.0665 with targets at 1.0715 & 1.0735 in extension.
Alternative scenario:
Below 1.0665 look for further downside with 1.0650 & 1.0635 as targets.
Comment:
The RSI shows upside momentum.
Bitcoin / Dollar intraday: rebound towards 27730
Our pivot point is at 26750.
Our preference:
Rebound towards 27730.
Alternative scenario:
Below 26750, expect 26400 and 26200.
Comment:
The RSI is below its neutrality area at 50. The MACD is above its signal line and negative. The configuration is mixed. Moreover, the price stands above its 20 period moving average (27038) but below its 50 period moving average (27330).
Hang Seng (HKFE) (HK50) Intraday: key resistance at 18330.
Pivot:
18330.00
Our preference:
Short positions below 18330.00 with targets at 17900.00 & 17740.00 in extension.
Alternative scenario:
Above 18330.00 look for further upside with 18510.00 & 18690.00 as targets.
Comment:
The upward potential is likely to be limited by the resistance at 18330.00.
*VSTAR.com is not a financial advisor and not responsible for any damages or losses arising from any use of this information.
