DAILY MARKET NEWSLETTER March 6, 2024： A Comprehensive Overview of Market Movements and Economic Data

DAILY MARKET NEWSLETTER March 6, 2024

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 Tuesday, U.S. stocks fell for a second session. The Dow Jones Industrial Average dropped 404 points (-1.04%) to 38,585, the S&P 500 declined 52 points (-1.02%) to 5,078, and the Nasdaq 100 slid 328 points (-1.80%) to 17,897.

• Technology, real estate and consumer discretionary stock sectors led the market lower.

• Tesla (TSLA) fell a further 3.93%, Microsoft (MSFT) dropped 2.96%, Apple (AAPL) lost 2.84%, and Meta Platforms (META) was down 1.60%.

• However, Nvidia (NVDA) added 0.85% to $859.64, a record close.

• Target (TGT) surged 12.02%. The retail giant's full-year sales forecast exceeded expectations.

• The U.S. 10-year Treasury yield dropped 7.4 basis points to 4.145%.

• Regarding U.S. economic data, the Institute for Supply Management (ISM) services purchasing managers index fell to 52.6 in February (vs 52.9 expected).

• Factory orders dropped 3.6% on month in January (vs -4.9% expected).

• In Europe, the DAX 40 declined 0.10%, and the CAC 40 slipped 0.30%, while the FTSE 100 rose 0.08%.

• U.S. WTI crude-oil futures settled $0.56 lower (-0.71%) at $78.18 a barrel.

• Gold price hit a fresh record high of $2,141 an ounce during the session before easing to $2,129

MARKET WRAP: FOREX

• The U.S. dollar remained soft against other major currencies amid growing expectations that the Federal Reserve would cut interest rates in June. The dollar index dipped to 103.75.

• EUR/USD added 2 pips to 1.0856. The Eurozone's producer prices dropped 8.6% on year in January (vs -7.4% expected).

• France's industrial production declined 1.1% on month in January (vs -0.4% expected).

• USD/JPY fell 56 pips to 149.95.

• GBP/USD gained 13 pips to 1.2703.

• AUD/USD dipped 8 pips to 0.6503.

• USD/CHF fell 17 pips to 0.8830, while USD/CAD gained 18 pips to 1.3589.

• Bitcoin experienced a roller coaster ride during the session. It eventually surpassed the key level of $69,000, a record high marked in November 2021, before encountering heavy selling and pulling back to $59,230. Bitcoin then worked its way back to $63,500.

MORNING TRADING

• In Asian trading hours, AUD/USD edged up to 0.6510. Australia's data showed that the gross domestic product grew 1.5% on year in the fourth quarter (as expected).

• Meanwhile, EUR/USD and GBP/USD were both little changed at 1.0850 and 1.2700 respectively.

• USD/JPY remained subdued at 149.95.

• Gold eased further to $2,125.

• Bitcoin was broadly unchanged at $63,260.

Technical Analysis

• EUR/USD

• Long positions preferred above 1.0840, targeting 1.0875 and 1.0890.

• If price drops below 1.0840, look for further downside towards 1.0825 and 1.0810.

• Intraday Trend: Upward

• Pivot Point: 1.0840

• Strategy:

• Technical Indicator: RSI suggests upward momentum.

• GBP/USD

• Long positions preferred above 1.2680, targeting 1.2710 and 1.2735.

• If price drops below 1.2680, look for further downside towards 1.2665 and 1.2650.

• Intraday Trend: Upward

• Pivot Point: 1.2680

• Strategy:

• Technical Indicator: RSI is mixed but leans bullish.

• USD/JPY

• Short positions preferred below 150.25, targeting 149.70 and 149.45.

• If price climbs above 150.25, look for further upside towards 150.45 and 150.60.

• Intraday Trend: Pressure to the downside

• Pivot Point: 150.25

• Strategy:

• Technical Indicator: Expect choppy, bearish price action as long as 150.25 holds as resistance.

  

• Dow Jones (CME) (H4)

• Short positions preferred below 38680.00, targeting 38470.00 and 38350.00.

• If price climbs above 38680.00, look for further upside towards 38810.00 and 38910.00.

• Intraday Trend: Ranging

• Pivot Point: 38680.00

• Strategy:

• Technical Indicator: Expect choppy, bearish price action as long as 38680.00 holds as resistance.

  

This article is for reference only and does not constitute investment advice. Any investment decisions should be based on your own judgment and risk tolerance.