Asia Morning: U.S. Stocks Show Resilience

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Banks (+5.49%), Automobiles & Components (+3.39%) and Energy (+3.25%) sectors performed the best...

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On Friday, U.S. stocks showed resilience closing higher. The Dow Jones Industrial Average rose 369 points (+1.44%) to 26075, the S&P 500 gained 33 points (+1.05%) to 3185, and the Nasdaq 100 Index added 81 points (+0.76%) to 10836, another record close. 


S&P 500 Index: Daily Chart


Source: GAIN Capital, TradingView


Banks (+5.49%), Automobiles & Components (+3.39%) and Energy (+3.25%) sectors performed the best. Carnival (CCL +10.84%), Royal Caribbean Cruises (RCL +9.87%), United Airlines (UAL +8.29%), Marathon Petroleum (MPC +8.55%) and Netflix (NFLX +8.07%) were top gainers.

On the technical side, about 39.5% (42.5% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 39.2% (47.9% in the prior session) were trading above their 20-day moving average.

U.S. official data showed that the Producer Price Index fell 0.2% on month in June (+0.4% expected).

European stocks rebounded. The Stoxx Europe 600 Index rose 0.88%. Germany's DAX 30 jumped 1.15%, France's CAC 40 gained 1.01%, and the U.K.'s FTSE 100 was up 0.76%.

The benchmark 10-year Treasury yield settled at 0.633%, up from 0.605% Thursday.

Spot gold price was down for a second session as it declined $4.00 (-0.3%) to $1,798 an ounce.

Oil prices climbed after the Baker Hughes U.S. oil-rig number fell to an 11-year-low of 181. U.S. WTI crude oil futures (August) increased 2.3% to $40.55 a barrel.

On the forex front, the ICE U.S. Dollar Index was broadly flat on day at 96.66. Market sentiment was lifted by Gilead Sciences' positive trial results of remdesivir in the treatment of Covid-19.

EUR/USD gained 0.2% to 1.1300.

GBP/USD edged up 0.1% to 1.2622.

USD/JPY dropped 0.3% to 106.90, the lowest level since June 23.


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