Asia Morning: U.S. Stocks Post Modest Gains on Stimulus Optimism
Ming Lam November 20, 2020 9:09 AM
Tesla (TSLA) closes at an all-time high...
On Thursday, U.S. stocks posted modest gains. The Dow Jones Industrial Average rose 44 points (+0.15%) to 29483, the S&P 500 added 14 points (+0.39%) to 3581, and the Nasdaq 100 gained 90 points (+0.76%) to 11985.
Nasdaq 100 Index (Daily Chart) : Still Bullish
Sources: GAIN Capital, TradingView
Stocks bounced after Senate Minority Leader Chuck Schumer said Senate Majority Leader Mitch McConnell had agreed to revive fiscal stimulus talks.
Energy (+1.53%), Semiconductors & Semiconductor Equipment (+1.32%) and Food & Staples Retailing (+1.13%) sectors put up the best performance. Coty Inc (COTY +17.92%), L Brands (LB +17.67%), Mylan (VTRS +11.86%) and Devon Energy (DVN +6.27%) were top gainers.
Tesla (TSLA +2.60%) closed at an all-time high of $499.27.
Approximately 89% (90% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 80% (85% in the prior session) were trading above their 20-day moving average.
U.S. official data showed that Initial Jobless Claims unexpectedly rose to 742,000 (700,000 expected), while Existing Homes Sales jumped to an annualized rate of 6.85 million units in October (6.47 million units expected), the most since 2006. The Conference Board Leading Index rose 0.7% on month in October (as expected).
European stocks were broadly lower. The Stoxx Europe 600 fell 0.75%, Germany's DAX lost 0.88%, France's CAC 40 dropped 0.67%, and the U.K.'s FTSE 100 was down 0.80%.
U.S. Treasury prices traded higher, as the benchmark U.S. 10-year Treasury yield declined to 0.850% from 0.880% Wednesday.
Spot gold fell $4 (-0.26%) to $1,867 an ounce.
U.S. WTI crude futures (January) rose $0.14 (+0.33%) to $41.96 a barrel.
The U.S. dollar gave up early gains to trade lower against most other major currencies. The ICE Dollar Index closed lower at 92.30 extending its decline to a sixth session.
EUR/USD pared losses to close 0.18% higher at 1.1875. The pair remains at levels above both 20-day and 50-day moving averages.
GBP/USD edged lower to 1.3262. On a daily chart, the pair stays at elevated levels close to the upper Bollinger band.
USD/JPY stepped lower to 103.74 posting a six-day losing streak.
USD/CHF eased 0.08% to 0.9106, and USD/CAD edged down 0.07% to 1.3072.
AUD/USD declined 0.23% to 0.7288. According to official data, Australia's economy added 178,800 jobs in October (-27,500 jobs expected), while the jobless rate edged up to 7.0% (7.1% 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.