On Monday, U.S. stocks closed mixed after turning sharply lower in the final trading hour. The Nasdaq 100 Index shed 234 points (-2.16%) to 10602, the S&P 500 fell 29 points (-0.94%) to 3155, while the Dow Jones Industrial Average edged up 10 points to 26085.
Nasdaq 100 Index: Daily Chart
Source: GAIN Capital, TradingView
Investors were discouraged by California's action to roll back its reopening plans due to an uptick in coronavirus cases.
Software & Services (-2.87%), Semiconductors & Semiconductor Equipment (-2.29%) and Media (-2.19%) sectors were the worst performers. Fortinet (FTNT -10.07%), Analog Devices (ADI -5.82%), Carnival Corp (CCL -5.45%), Salesforce.com (CRM -5.30%) and Adobe Systems (ADBE -5.09%) were the top losers. On the other hand, Wynn Resorts (WYNN +9.62%) and Las Vegas Sands (LVS +6.15%) jumped.
On the technical side, about 42.0% (39.5% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 50.1% (39.2% in the prior session) were trading above their 20-day moving average.
The U.S. government posted a record Federal Budget Deficit of 864.1 billion dollars for June (863.0 billion dollars deficit expected).
European stocks were broadly higher. The Stoxx Europe 600 Index jumped 1.00%. Germany's DAX 30 increased 1.32%, France's CAC 40 gained 1.73%, and the U.K.'s FTSE 100 was up 1.33%.
The benchmark 10-year Treasury yield climbed to 0.643% from 0.633% Friday.
Spot gold price rebounded $4.00 (+0.2%) to $1,802 an ounce halting a two-session decline.
Oil prices declined after reports that major oil-producing countries may ease output curbs in view of improving demand. U.S. WTI crude oil futures (August) fell 1.1% to $40.10 a barrel.
On the forex front, the ICE U.S. Dollar Index slipped 0.1% on day at 96.53.
EUR/USD rose 0.4% to 1.1347. Later today, the eurozone's industrial production for May (+15.0% on month expected) and the German ZEW Current Situation Index (-65.0 expected) will be reported.
GBP/USD slid 0.6% to 1.2557. Bank of England Governor Andrew Bailey said the U.K. economy is recovering but he is very worried about the jobs market. Meanwhile, investors will focus on U.K. GDP growth for May (+5.0% on month expected) and industrial production (+6.0% on month expected), both due later in the day.
USD/JPY climbed 0.4% to 107.29, snapping a three-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.