Asia Morning: U.S. Dollar Rebounds, Stocks Close Higher
Ming Lam August 3, 2020 9:46 AM
Meanwhile, the University of Michigan Consumer Sentiment Index (final reading) slipped to 72.5 in July, back near the pandemic low...
On Friday, U.S. stocks closed higher. The Dow Jones Industrial Average rebounded 114 points (+0.44%) to 26428, the S&P 500 rose 24 points (+0.77%) to 3271, and the Nasdaq 100 jumped 190 points (+1.78%) to 10905.
Nasdaq 100: Daily Chart
Source: GAIN Capital, TradingView
Technology Hardware & Equipment (+8.34%), Retailing (+2.01%) and Media (+0.86%) sectors performed the best.
Apple (AAPL +10.47%) gapped up to close at an all-time high of $425.04 after reporting better-than-expected earnings. The Company also announced a 4-for-1 stock split. Amazon.com (AMZN +3.70%) and Facebook (FB +8.17%) also closed higher, while Alphabet (GOOGL -3.28%) declined.
On the technical side, about 56.0% (57.0% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 65.9% (80.8% in the prior session) were trading above their 20-day moving average.
Regarding U.S. economic data, the University of Michigan Consumer Sentiment Index (final reading) slipped to 72.5 in July, back near the pandemic low.
Personal Income declined 1.1% on month in June (-0.6% expected), while Personal Spending increased 5.6% (+5.2% expected). The Market News International Chicago Purchasing Managers' Index jumped to 51.9 in July (44.0 expected).
Due later today is the Markit U.S. Manufacturing Purchasing Managers' Index (July final reading, 51.3 expected).
European stocks were broadly lower. The Stoxx Europe 600 Index dropped 0.89%, Germany's DAX 30 fell 0.54%, France's CAC 40 shed 1.43%, and the U.K.'s FTSE 100 lost 1.54%.
U.S. government bond prices remained firm, as the benchmark 10-year Treasury yield ticked down to 0.536%.
Spot gold price rebounded $17.00 (+0.9%) to $1,974 an ounce, and spot silver price surged 3.8% to $24.39 an ounce halting a three-day decline.
U.S. WTI crude oil futures (September) climbed 0.9% to $40.27 a barrel. Oil-field-services company Baker Hughes reported that U.S. oil rigs amounted to 180, compared with 181 in the previous week.
On the forex front, the U.S. dollar stabilized, with the ICE U.S. Dollar Index rebounding 0.5% to 93.46. For the whole of July, the Dollar Index lost 4%, the biggest monthly loss since September 2010.
EUR/USD failed to hold the key level of 1.1800 firmly closing at 1.1778. Official data showed that the Eurozone's 2Q GDP shrank at an annualized rate of 12.1% on quarter (as expected), and July Consumer Prices declined 0.3% on month (-0.5% expected).
In Germany, June Retail Sales dropped 1.6% on month (-3.0% expected).
GBP/USD ran up to 1.3170 before retreating to close at 1.3086. The Nationwide U.K. House Price Index rebounded 1.7% on month in July (-0.2% expected, -1.6% in June).
USD/JPY rebounded 1.1% to 105.87 halting a six-session losing streak. Japan's jobless rate declined to 2.8% in June (3.1% expected) from 2.9% in May. Industrial Production (preliminary reading) grew 2.7% on month in June (+1.0% expected, -8.9% in May).
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.