Asia Morning: U.S. Stocks, Gold Seem Unstoppable
Ming Lam August 7, 2020 9:09 AM
Tech stocks help to push the Nasdaq 100 Index to a fresh record close...
On Thursday, U.S. stocks charged higher, as tech stocks help to push the Nasdaq 100 Index (+141 points or 1.24%) to a fresh record close of 11267. The Dow Jones Industrial Average gained 185 points (+0.68%) to 27387, and the S&P 500 rose 21 points (+0.64%) to 3349.
Nasdaq 100 Index: Daily Chart
Source: GAIN Capital, TradingView
Media (+2.89%), Technology Hardware & Equipment (+2.74%) and Consumer Services (+1.75%) sectors gained the most. MGM Resorts (MGM +10.41%), Sealed Air (SEE +8.76%), Wynn Resorts (WYNN +7.42%) and Facebook (FB +6.49%) were among the top gainers. Apple (AAPL +3.49%) closed at an all-time high of $455.61 becoming the first company to have a market capitalization of 2 trillion dollars.
Regarding U.S. economic data, Initial Jobless Claims fell to 1.19 million last week (1.40 million expected), the lowest level since March.
Due later today is the U.S. official July Jobs Report (an addition of 1.48 million non-farm payrolls, a drop in jobless rate to 10.6% expected).
European stocks returned to the downside. The Stoxx Europe 600 Index dropped 0.73%, Germany's DAX 30 lost 0.54%, France's CAC 40 sank 0.98%, and the U.K.'s FTSE 100 shed 1.27%.
The benchmark U.S. 10-year Treasury yield declined to 0.535% from 0.549% Wednesday.
Spot gold price extended its power rally to a fifth session climbing $28.00 (+1.38%) to $2,066 an ounce. Meanwhile, spot silver price surged 7.3% to $28.91 an ounce.
U.S. WTI crude oil futures (September) fell 0.6% to $41.95 a barrel.
On the forex front, the U.S. dollar was little changed at close with the ICE U.S. Dollar Index staying at 92.77.
EUR/USD was up for a third session edging higher to 1.1876. German's Factory Orders jumped 27.9% on month in June, much better than +10.1% expected.
GBP/USD gained 0.2% to 1.3142. As expected, the Bank of England kept unchanged its key interest rate at 0.100% and its asset purchase program at 745 billion pounds.
USD/JPY was little changed at 105.55.
AUD/USD advanced 0.6% to 0.7235 extending its rally to a third day. China's government will report July Trade Balance ($42.60 billion surplus, Exports -0.6% on year expected).
USD/CAD regained the key level of 1.3300 halting a four-day decline.
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.