Asia Morning: U.S. Stocks Gain on Reignited Stimulus Hopes

House Speaker Nancy Pelosi says she is hopeful for an agreement on a fiscal stimulus package this week...

Trading floor 2

On Tuesday, U.S. stocks closed higher. The Dow Jones Industrial Average increased 113 points (+0.40%) to 28308, the S&P 500 added 16 points (+0.47%) to 3443, and the Nasdaq 100 was up 43 points (+0.37%) 11677.

Dow Jones Industrial Average (Daily Chart) : Still Bullish

Sources: GAIN Capital, TradingView

House Speaker Nancy Pelosi said in an interview that she is hopeful for an agreement on a fiscal stimulus package this week. 

Automobiles & Components (+3.51%), Banks (+1.32%) and Consumer Services (+1.19%) sectors gained the most. Cimarex Energy (XEC +7.67%), General Motors (GM +6.75%) and Kohls Corp (KSS +6.61%) were top gainers.

International Business Machines (IBM -6.49%) gapped down to the bottom of the S&P after its third-quarter results missed expectations.

In after-market hours, Netflix (NFLX) plunged over 6% as the company said subscriber growth slowed in the third quarter.

Approximately 71% (75% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 66% (81% in the prior session) were trading above their 20-day moving average.

U.S. official data showed that housing starts rose to an annualized rate of 1.415 million units in September (1.465 million units expected).

European stocks lacked upward momentum. The Stoxx Europe 600 Index slipped 0.35%, Germany's DAX 30 dropped 0.92%, France's CAC 40 lost 0.27%, while the U.K.'s FTSE 100 was little changed.

U.S. Treasury prices eased further, as the benchmark 10-year Treasury yield advanced to 0.795% from 0.760% Monday.

Spot gold gained $6 (+0.31%) to $1,910 an ounce.

U.S. WTI crude futures (December) advanced $0.64 (+1.60%) to $41.70 a barrel.

On the forex front, the U.S. dollar got weaker against other major currencies as investors turned to riskier assets amid reignited stimulus hopes. The ICE Dollar Index lost 0.37% to 93.08 extending its losing streak to a third session.

EUR/USD regained the key 1.1800 level as it rose 0.45% to 1.1822. The pair has returned to levels above both 20-day and 50-day moving averages.

GBP/USD eased 6 pips to 1.2948. Talks over a post-Brexit trade deal between Britain and the European Union still showed no progress.

USD/JPY edged up to 105.49, while USD/CAD fell 0.48% to 1.3128.

AUD/USD sank a further 0.33% to 0.7047 posting a five-session decline.

The Chinese yuan stayed at an 18-month high against the dollar, with USD/CNH (offshore yuan) declining 0.25% to 6.6622.

More from Commodities


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.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX 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), StoneX Financial 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 StoneX Financial 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 StoneX Financial 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.

StoneX Financial 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 for the complete Risk Disclosure Statement.