On Tuesday, U.S. stocks reversed course to the downside after a surge in the prior session. The Dow Jones Industrial Average fell 396 points (-1.51%) to 25890, the S&P 500 dropped 34 points (-1.08%) to 3145, and the Nasdaq 100 was down 80 points (-0.75%) to 10524.
Nasdaq 100 Index: Daily Chart
Source: GAIN Capital, TradingView
Energy (-3.18%), Banks (-3.16%) and Capital Goods (-2.24%) sectors lost the most. Devon Energy (DVN -7.26%), Phillips 66 (PSX -5.21%), United Airlines (UAL -7.47%), American Airlines (AAL -6.68%), Delta Airlines (DAL -5.19%) and Boeing Co (BA -4.81%) were top losers.
On the technical side, about 45.9% (43.3% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 56.7% (39.3% in the prior session) were trading above their 20-day moving average.
European stocks were broadly lower. The Stoxx Europe 600 Index declined 0.61%. Germany's DAX 30 fell 0.92%, France's CAC 40 lost 0.74%, and the U.K.'s FTSE 100 was down 1.53%.
U.S. government bond prices rebounded, as the benchmark 10-year Treasury yield eased to 0.652% from 0.683% Monday.
Spot gold price extended its winning streak to a fourth session gaining $10.00 (+0.6%) to $1,795 an ounce, the highest close since September 2011.
U.S. WTI crude oil futures (August) were little changed at $40.62 a barrel.
On the forex front, the ICE U.S. Dollar Index rose 0.2% on day to 96.97. Federal Reserve Bank of Atlanta President Raphael Bostic said the coronavirus impacts might go on longer than they had expected and planned for.
EUR/USD lost 0.3% to 1.1276. Official data showed that German industrial production grew 7.8% on month in May (+11.1% expected).
GBP/USD climbed 0.4% to 1.2543. U.K. chief negotiator David Frost met his European Union counterpart Michel Barnier on Tuesday evening, and investors were hopeful ahead of the trade talks scheduled later today.
USD/JPY gained 0.2% to 107.60.
AUD/USD dropped 0.4% to 0.6944. The Reserve Bank of Australia kept its benchmark rate unchanged at 0.25% as expected.
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.