Asia Morning: U.S. Stocks Up, Dollar Down on Growing Stimulus Expectations

President Donald Trump says he wants to see a larger stimulus package...

Trading floor 2

On Friday, U.S. stocks posted further gains. The Dow Jones Industrial Average increased 161 points (+0.57%) to 28586, the S&P 500 rose 30 points (+0.88%) to 3477, and the Nasdaq 100 was up 174 points (+1.51%) to 11725.


Nasdaq 100 Index: Rebound Continues


Sources: GAIN Capital, TradingView


Stocks climbed, gold jumped and the U.S. dollar slid on growing expectations of a forthcoming fiscal stimulus package. U.S. President Donald Trump said in an interview that he wants to see a larger stimulus package than the one offered by either Democrats or Republicans.

Retailing (+2.08%), Software & Services (+1.94%) and Technology Hardware & Equipment (+1.45%) sectors performed the best. Xilinx (XLNX +14.11%) gained the most after reports that Advanced Micro Devices (AMD -3.94%) may buy the company for $30 billion. eBay (EBAY +6.47%) and Fortinet (FTNT +3.73%) were also top gainers.


Approximately 75% (70% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 89% (79% in the prior session) were trading above their 20-day moving average.

European stocks remained buoyed. The Stoxx Europe 600 Index rose 0.55%, France's CAC 40 rose 0.71% and the U.K.'s FTSE 100 added 0.65%, while Germany's DAX 30 was little changed.

U.S. Treasury prices slipped, as the benchmark 10-year Treasury yield advanced to 0.772% from 0.764% Thursday.

Spot gold price took advantage of a weaker dollar jumping $34 (+1.84%) to $1,928 an ounce.

U.S. WTI crude futures (November) fell $0.66 (-1.60%) to $40.53 a barrel.

On the forex front, the U.S. dollar was broadly lower across the board, pressured by the U.S. government's signal that it could accept a larger stimulus package. The ICE Dollar Index dropped 0.55% to 93.06.

EUR/USD regained the 1.1800 level as it jumped 0.6% to 1.1829. The pair has returned to levels above both its 20-day and 50-day moving averages.

GBP/USD crossed above the key 1.3000 level by rising 0.84% to 1.3046. Official data showed that U.K. industrial production edged up 0.3% on month in August (+2.5% expected).

USD/JPY failed to hold the key 106.00 level and close 0.38% lower at 105.62. 

Commodity-related currencies charged higher. AUD/USD surged 1.05% to 0.7240 extending its winning streak to a third session.

USD/CAD was down for a third day sinking 0.57% to 1.3121.

The Chinese yuan (offshore) continued its recent rally against the greenback. USD/CNH slid a further 0.77% to 6.6867, the lowest level since April 2019.

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.