Asia Morning: Tech Shares Lead US Market Sell-off

,

Market sentiment was dampened by a spike in unemployment claims and worries of a new round of lockdowns amid rising coronavirus cases...

Trading floor 2

On Thursday, U.S. stocks encountered a sell-off. The Dow Jones Industrial Average fell 353 points (-1.31%) to 26652, the S&P 500 dropped 40 points (-1.23%) to 3235, and the Nasdaq 100 slumped 290 points (-2.67%) to 10580.


Nasdaq 100 Index: Daily Chart


Source: GAIN Capital, TradingView


Market sentiment was dampened by a spike in unemployment claims and worries of a new round of lockdowns amid rising coronavirus cases.

Technology Hardware & Equipment (-3.26%), Software & Services (-2.55%) and Retailing (-2.48%) sectors lost the most. Citrix Systems (CTXS -12.93%), Allegion Plc (ALLE -8.10%), Align Technology (ALGN -5.95%) and Chipotle Mexican Grill (CMG -5.42%) were the top losers.

On the technical side, about 57.0% (53.4% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 89.3% (87.5% in the prior session) were trading above their 20-day moving average.

In after-marker hours, Intel (INTC -1.06%) posted second quarter adjusted earnings per share of $1.23 (beating expectations) while warning of further delays in development of its superfast seven-nanometer chip technology.

U.S. official data showed that Initial Jobless Claims rose to 1.416 million for the week ended July 18 (1.300 million expected), while Continuing Claims unexpectedly fell to 16.197 million for the week ended July 11 (17.100 million expected).

The Conference Board Leading Index increased 2.0% on month in June (+2.1% expected).

Due later today are reports on Markit U.S. Manufacturing Purchasing Managers' Index (a rise in July preliminary reading to 52.0 expected) and New Homes Sales (an increase in June annualized rate of 700,000 units expected).

European stocks were little changed. The Stoxx Europe 600 Index, Germany's DAX 30, France's CAC 40 and the U.K.'s FTSE 100 were all broadly flat at close.

The benchmark U.S. 10-year Treasury yield remained under pressure drifting lower to 0.581%.

Spot gold price advanced a further $16.00 (+0.9%) to $1,887 an ounce extending its winning streak to a fifth session. On the other hand, spot silver retreated 1.8% to $22.59 an ounce halting a four-day rally.

U.S. WTI crude oil futures (August) lost 2.0% to settle at $41.07 a barrel.

On the forex front, the ICE U.S. Dollar Index fell 0.2% on day to 94.78, down for a fifth straight session.

EUR/USD rose 0.3% to 1.1600, posting a five-day rally. Official data showed that the eurozone's Consumer Confidence Index slipped to -15.0 in July (-12.0 expected) from -14.7 in June. On the other hand, Research firm Markit will release the eurozone's July Manufacturing PMI (50.1 expected) and Services PMI (51.0 expected) later in the day.

GBP/USD was little changed at 1.2736. Later today, the Markit U.K. Manufacturing PMI (52.0 expected) and Services PMI (51.5 expected) for July will be reported.

USD/JPY dropped 0.3% to 106.85.

AUD/USD lost 0.5% to 0.7103.

More from Commodities

Disclaimer

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.

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.