Asia Morning: U.S. Stocks Close Higher
Ming Lam October 23, 2020 9:11 AM
While the political tug-of-war on the fiscal stimulus package continues, investors are encouraged by upbeat jobs and housing reports...
On Thursday, U.S. stocks closed higher. The Dow Jones Industrial Average rebounded 152 points (+0.54%) to 28363, the S&P 500 gained 17 points (+0.52%) to 3453, and the Nasdaq 100 was little changed at 11662.
Nasdaq 100 Index (Daily Chart) : Bullish Above 11180
Sources: GAIN Capital, TradingView
While the political tug-of-war on the fiscal stimulus package continued, investors were encouraged by upbeat jobs and housing reports.
The U.S. Labor Department said Initial Jobless Claims dropped to 787,000 (870,000 expected) and Continuing Claims fell to 8.373 million (9.625 million expected). Existing Homes Sales increased to an annualized rate of 6.54 million units in September (6.30 million units expected).
Energy (+4.16%), Banks (+3.5%) and Automobiles & Components (+3.39%) sectors performed the best. Align Technology (ALGN +34.97%), Gap (GPS +13.65%), Discover Financial Services (DFS +9.17%) and Snap-on (SNA +9.13%) were top gainers.
Coca-Cola (KO +1.38%) and AT&T (T +5.84%) also traded higher after reporting better-than-expected quarterly results.
European stocks were mixed. The Stoxx Europe 600 Index declined 0.14%, Germany's DAX 30 eased a further 0.12%, France's CAC 40 was little changed, while the U.K.'s FTSE 100 added 0.16%.
U.S. Treasury prices remained under pressure, as the benchmark 10-year Treasury yield advanced further to 0.845% from 0.815% Wednesday.
Spot gold fell $19 (-1.03%) to $1,904 an ounce.
U.S. WTI crude futures (December) gained $0.63 (+1.57%) to $40.66 a barrel.
On the forex front, the U.S. dollar regained some strength against other major currencies. The ICE Dollar Index rebounded 0.34% to 92.92 halting a four-session losing streak.
EUR/USD fell 0.36% to 1.1818, and GBP/USD retreated 0.51% to 1.3082 on possible profit-taking by traders following gains in the prior session. At the same time, no progress on Brexit trade talks was reported by U.K. and European Union officials.
USD/JPY climbed 0.26% to 104.86 after touching a one-month low of 104.34 Wednesday.
AUD/USD was flat at 0.7117.
USD/CNH (offshore yuan) rose 0.40% to 6.6706 ending a four-day decline.
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 cityindex.com.sg for the complete Risk Disclosure Statement.