Asia Morning: Dow Up 2%, Jobs Reduction Smaller Than Expected

On Wednesday, U.S. stocks extended their winning streak to a fourth session. Investors were encouraged by better-than-expected private jobs data and signs of abating social unrest...

Trading floor 2

On Wednesday, U.S. stocks extended their winning streak to a fourth session. Investors were encouraged by better-than-expected private jobs data and signs of abating social unrest. 

The Dow Jones Industrial Average surged 527 points (+2.1%) to 26269, the S&P 500 rose 42 points (+1.4%) to 3122, and the Nasdaq 100 was up 47 points (+0.5%) to 9704.

Source: GAIN Capital, TradingView

Banks (+5.21%), Automobiles & Components (+4.92%) and Consumer Durables & Apparel (+4.58%) sectors performed the best.

Simon Property Group Inc (SPG +14.86%), Macerich Company (MAC +14.23%), Coty (COTY +13.37%, Boeing Co (BA +12.95%), Macy’s (M +12.93%) and United Airlines (UAL +12.50%) were top gainers. 

On the technical side, about 46.4% (44.6% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 95.8% (94.9% in the prior session) were above their 20-day moving average.

The Automatic Data Processing (ADP) employment report showed a reduction of 2.760 million private jobs in May, much better than -9.000 million expected and -19,557 million in April.

Also, U.S. official data showed that Factory Orders decreased 13.0% on month in April (-13.4% expected) and Durable Goods Orders (final reading) dropped 17.7% (-17.2% expected).

Later today, Initial Jobless Claims (a decline to 1.843 million expected), Continuing Claims (a decline to 20.050 million expected), and Trade Balance (a deficit of 49.2 billion dollar expected for April) will be reported.

Meanwhile, the U.S. government said it will block Chinese airlines from flying into the country in response to China's decision to ban U.S. air carriers.    

European stocks saw another session of beefy gains, with the Stoxx Europe 600 Index surging 2.5%. Germany's DAX jumped 3.9%, the U.K.'s FTSE 100 rose 2.6% and France's CAC gained 3.4%.

Safe-haven assets declined in prices amid growing market optimism. U.S. Treasury prices sank further as the benchmark 10-year Treasury yield advanced to 0.761% from 0.679% Tuesday. Spot gold price fell $26.00 (-1.5%) to $1,698 posting a two-day decline.

Oil prices charged higher on reports that Saudi Arabia and Russia have agreed to extend an output cut deal through July. U.S. WTI crude oil futures (July) added 1.3% $37.29 a barrel.

On the forex front, the ICE U.S. Dollar Index extended its decline on Wednesday, dropping 0.3% on day to 97.31.

EUR/USD rose 0.6% to 1.1232, posting a seven-day winning streak. The German coalition parties have agreed a fresh 130 billion euros stimulus package. Meanwhile, official data showed that the eurozone's jobless rates edged up to 7.3% in April (8.2% expected) from 7.1% in March, while German jobless rate climbed to 6.3% in May (6.2% expected) from 5.8% in April. On the other hand, the European Central Bank is expected to keep its key interest rates unchanged later today.

More from Indices


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 for the complete Risk Disclosure Statement.

Important Notice:

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.