Asia Morning: Nasdaq 100 Hit Fresh Record
George Lam September 1, 2020 8:50 AM
On Monday, U.S. stocks were mixed, but Nasdaq 100 hit a fresh record high as the tech sector shines...
On Monday, U.S. stocks closed mixed. Nasdaq 100 hit a fresh record high, adding 114 points (+1.0%) to 12110, while the Dow Jones Industrial Average dropped 223 points (-0.8%) to 28430 and S&P 500 fell 7 points (+0.2%) to 3500.
Nasdaq 100 daily chart:
Source: Gain Capital, TradingView
Technology Hardware & Equipment (+2.8%), Retailing (+0.68%) and Pharmaceuticals, Biotechnology & Life Sciences (+0.63%) sectors gained the most, while Energy (-2.2%), Banks (-2.17%) and Materials (-1.49%) sectors were the worst performers.
Approximately 64.2% of stocks in the S&P 500 Index were trading above their 200-day moving average and 71.7% were trading above their 20-day moving average.
Regarding U.S. economic data, the Dallas Fed Manufacturing Activity Index rose to 8.0 in August (0.0 expected) from -3.0 in July.
Later today, investors will focus on August ISM Manufacturing PMI (54.5 expected) and construction spending for July (+1.1% on month expected).
European stocks were broadly lower. The Stoxx Europe 600 Index sank 1.3%, Germany's DAX 30 lost 0.7% and France's CAC 40 slid 1.1%, while the U.K.'s FTSE 100 was closed for holiday.
The benchmark U.S. 10-year Treasury yield fell to 0.7048% from 0.7211% Friday.
WTI crude oil futures (October) dropped 0.8% to $42.61 a barrel.
Spot gold edged up 0.2% to $1,967 an ounce.
On the forex front, the ICE U.S. Dollar Index slipped 0.2% to 92.16, posting a fourth straight month of decline.
EUR/USD advanced 0.3% to 1.1939. European Central Bank's Executive Board member Isabel Schnabel said "there is no reason to adjust the monetary policy stance" at the moment as incoming economic data were in line with expectations. Later today, the eurozone's CPI data for August (+0.2% on year expected) and jobless rate for July (8.0% expected) will be released.
GBP/USD gained 0.1% to 1.3364.
USD/JPY rebounded 0.5% to 105.89. This morning, official data showed that Japan's jobless rate edged up to 2.9% in July (3.0% expected) from 2.8% in June, while capital spending declined 11.3% on year in the second quarter (-4.0% on year expected).
AUD/USD climbed 0.2% to 0.7380. The Reserve Bank of Australia is expected to keep its benchmark rate unchanged at 0.25% later in the day.
Other commodity-linked currencies were mixed against the greenback. NZD/USD eased 0.1% to 0.6736, while USD/CAD lost 0.4% to 1.3044, the lowest level since January.
China's official Manufacturing PMI slipped 51.0 in August (51.1 expected) from 51.2 in July, while Non-manufacturing PMI rose to 55.2 (54.1 expected) from 54.2.
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.