Asia Morning: U.S. Stocks Buoyed by Upbeat Jobs Report

,

On Thursday, U.S. stocks advanced further, boosted by a better-than-expected June jobs report...the Nasdaq 100 was up 62 points (+0.61%) to 10341, another record close...

Trading floor 2

On Thursday, U.S. stocks advanced further, boosted by a better-than-expected June jobs report. The Dow Jones Industrial Average once surged 493 points before closing with a gain of 92 points (+0.36%) at 25827. The S&P 500 climbed 14 points (+0.45%) to 3130, and the Nasdaq 100 was up 62 points (+0.61%) to 10341, another record close.


Nasdaq 100 Index: Daily Chart


Source: GAIN Capital, TradingView


Materials (+1.85%), Automobiles & Components (+1.46%) and Energy (+1.13%) sectors performed the best. Noble Energy Inc (NBL +7.79%), Akamai Technologies (AKAM +6.39%) and TechnipFMC (FTI +5.35%) were top gainers. Meanwhile, Carnival Corp (CCL -2.93%), Norwegian Cruise Line (NCLH -2.74%) and American Airlines (AAL -2.42%) lost the most.

On the technical side, about 41.3% (42.3% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 32.3% (31.7% in the prior session) were trading above their 20-day moving average.

The U.S. Labor Department reported that the number of Nonfarm Payrolls soared 4.800 million on month in June (+3.230 million expected) and the Jobless Rate fell to 11.1% (12.5% expected). Initial Jobless claims declined to 1.427 million for the week ended June 27 (1.350 million expected), while Continuing Claims increased to 19.290 million for the week ending June 20 (19.000 million expected).

U.S. Factory Orders jumped 8.0% on month in May (+8.6% expected), the biggest increase since 2014. May Durable Goods Orders growth was finalized at +15.7% on month (+15.8% expected).

European stocks rebounded strongly. The Stoxx Europe 600 Index jumped 1.97%. Germany's DAX 30 surged 2.84%, France's CAC 40 advanced 2.49%, and the U.K.'s FTSE 100 was up 1.34%.

The benchmark 10-year Treasury yield eased to 0.672% from 0.682% Wednesday.

Spot gold price added $5.00 (+0.3%) to $1,775 an ounce.

Oil prices firmed up as market sentiment remained upbeat. U.S. WTI crude oil futures (August) increased a further 2.1% to $40.65 a barrel.

On the forex front, the ICE U.S. Dollar Index was little changed on day at 97.21, despite a stronger-than-expected nonfarm payrolls report.

EUR/USD marked a day-high of 1.1303 before closing at 1.1237, down 0.1%. The German parliament voted in support of the European Central Bank's bond purchase program. Meanwhile, official data showed that the eurozone's jobless rate edged up to 7.4% in May (7.7% expected) from 7.3% in April.

GBP/USD fell 0.1% to 1.2467, after a two-day rally.

USD/JPY gained 0.1% to 107.53.


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.