US stocks fall after two Covid-19 vaccine trials halted
US stocks declined yesterday as the market reacted to the latest Apple iPhone event, corporate earnings, and vaccine news. In a virtual event yesterday, Apple unveiled its latest gadgets, including the new 5G-enabled iPhones, Homepod Mini, and Magsafe, among others. The firm’s shares fell by 2% during the event. The market also reacted to bank earnings. While JP Morgan and Citigroup released better-than-expected earnings, they warned that the country needed another stimulus to support growth. Also, investors reacted to news that Covid vaccine tests by Eli Lilly and Johnson & Johnson were suspended.
The price of crude oil was little changed in overnight trading as investors reacted to the latest monthly report by OPEC. The cartel’s report said it expected oil demand growth will fall to 6.5 million barrels per day, lower than its previous projection. The demand decline is mostly because of the second wave of the virus that has affected local and international travel. At the same time, supply from countries like Libya and Iraq has also been rising. Later today, the price will likely react to the demand forecast data from the Energy Information Administration (EIA).
Today, the focus will remain on corporate earnings in the US. Among the companies to watch are UnitedHealth, Bank of America, Wells Fargo, Goldman Sachs, and PNC Financial, among others. In Europe, Christine Lagarde will deliver a speech, in which she will provide hints about monetary policy. Also, we will receive the consumer price index data from Spain and the Eurozone industrial production data. Finally, the US the Bureau of Labour Statistics will release the producer price index (PPI) data.
The EUR/USD price declined to an intraday low of 1.1730. On the four-hour chart, the price is slightly below the important support of 1.1750, which is the neckline of the head and shoulders pattern. The price is also slightly below the 25-day and 15-day exponential moving averages while the signal and main lines of the MACD have moved below the neutral level. The price also moved below the pink trendline. Therefore, the pair is likely to continue falling as bears aim for moves below 1.1700.
The XBR/USD price is little changed ahead of the EIA monthly report. It is trading at 42.50, which is in the same range it was yesterday. On the hourly chart, the price is a few points above the 15-day and 25-day moving average. It is also along the 23.6% Fibonacci retracement level while the RSI has moved relatively lower. The price has also formed a triangle pattern that is shown in pink. Therefore, today, the price is likely to see a significant bullish breakout.
The AUD/USD pair dropped to an intraday low of 0.7150. On the four-hour chart, the price managed to cross the two short and medium-term moving averages and is along the 38.2% Fibonacci retracement levels. The RSI, meanwhile, has dropped from a high of 74 to the current 45. It is also slightly above the ascending pink trendline. Therefore, the pair will remain in a bullish trend if bulls can hold-on above this line.