Asia Morning: U.S. Stocks Surge Despite Election Standstill

The Nasdaq 100 Index soars 497 points or 4.41%...

Trading floor 2

On Wednesday,  U.S. stocks extended their strong gains to a third session. The Dow Jones Industrial Average rose 367 points (+1.34%) to 27847, the S&P 500 increased 74 points (+2.20%) to 3443, and the Nasdaq 100 soared 497 points (+4.41%) to 11777.


S&P 500 Index (Daily Chart) : Bullish Gap

Sources: GAIN Capital, TradingView



The presidential race between Donald Trump and Joe Biden remains unsettled, while all eyes are now on vote counting in Michigan and Pennsylvania. Both sides are expected to take legal actions to challenge results in states, and it could take days or weeks to decide who the winner is.

Media (+5.2%), Pharmaceuticals, Biotechnology & Life Sciences (+5.08%) and Software & Services (+4.16%) sectors performed the best. Biogen (BIIB +43.97%) became the top gainer after the U.S. Food and Drug Administration (FDA) posted a positive report on the company's Alzheimer's drug aducanumab.

Approximately 71% (67% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 51% (33% in the prior session) were trading above their 20-day moving average.

Regarding U.S. economic data, the Automatic Data Processing's employment report showed that the economy added 365,000 private jobs in October (+643,000 expected). The Institute for Supply Management (ISM) Services Index posted at 56.6 for October (57.5 expected).

European stocks stayed strong. The Stoxx Europe 600 rose 2.05%, Germany's DAX climbed 1.95%, France's CAC 40 jumped 2.44% and the U.K.'s FTSE 100 was up 1.67%.

U.S. Treasury prices rebounded, as the benchmark 10-year Treasury yield retreated to 0.768% from 0.884% Tuesday.

Spot gold fell $5 (-0.27%) to $1,904 an ounce.

U.S. WTI crude futures (December) advanced a further $1.36 (+3.61%) to $39.02 a barrel.

The forex market saw a choppy session as the election was too close to call. The ICE Dollar Index swung up to 94.30 before coming down to close at 93.44, down 0.11% on day.

EUR/USD sank to 1.1603 before rebounding to close at 1.1723, compared with 1.1715 in the prior session.

USD/JPY failed to stay above 105.00 and closed at 104.52.

GBP/USD lost the 1.3000 level again as it slipped 0.53% to 1.2989.

AUD/USD managed to added 0.22% to 0.7180.

USD/CNH (offshore yuan) ended 0.86% to 6.6233 posting a 5-day losing streak.


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.