Asia Morning: US Stock Markets Sharply Lower amid Tech Shares Sell-off

On Thursday, Nasdaq 100 posted the largest decline since March, while the VIX Index, a measure of expected volatility, jumped 26.5% to a 3-month high...

Downtrend 1

On Thursday, U.S. stocks closed sharply lower amid tech shares sell-off. Nasdaq 100 plunged 649 points (-5.2%) to 11771, the largest decline since March. S&P 500 slumped 125 points (-3.5%) to 3455 and the Dow Jones Industrial Average lost 807 points (-2.8%) to 28257. The VIX Index, a measure of expected volatility, jumped 26.5% to a 3-month high of 33.60.

Nasdaq 100 daily chart:

Source: Gain Capital, TradingView


Technology Hardware & Equipment (-7.24%), Semiconductors & Semiconductor Equipment (-6.22%) and Software & Services (-4.87%) sectors led the decline. Approximately 67.4% of stocks in the S&P 500 Index were trading above their 200-day moving average and 79.8% were trading above their 20-day moving average. 

Regarding U.S. economic data, the ISM Services PMI dropped to 56.9 in August (57.0 expected) from 58.1 in July, while initial jobless claims fell to 0.88 million in the week ending August 29 (0.95 million expected) from 1.01 million in the prior week.

Later today, the closely watched non-farm payrolls report for August will be released (+1.35 million jobs, jobless rate at 9.8% expected).

European stocks were broadly lower. The Stoxx Europe 600 Index retreated 1.0%, Germany's DAX 30 slid 1.4%, France's CAC 40 fell 0.4% and the U.K.'s FTSE 100 was down 1.5%.

The benchmark U.S. 10-year Treasury yield declined to 0.6347% from 0.6477% Wednesday, down for a fifth straight session.

WTI crude oil futures (October) slipped 0.3% to $41.37 a barrel.

Spot gold lost 0.6% to $1,931 an ounce, as the U.S. dollar extended its rebound.

On the forex front, the ICE U.S. Dollar Index gained 0.1% on day to 92.78, posting a three-day rebound ahead of the non-farm payrolls report due later today.

EUR/USD was little changed at 1.1849. Official data showed that the eurozone's retail sales declined 1.3% on month in July (+1.0% expected).

GBP/USD slid 0.6% to 1.3276. Research firm Markit will publish U.K. Construction PMI for August later in the day (58.3 expected).

USD/JPY slipped 0.1% to 106.10, after a three-day rally.

USD/CAD rose 0.7% to 1.3131. Official data showed that Canada recorded a trade deficit of 2.45 billion Canadian dollars in July (2.50 billion Canadian dollars deficit expected). Later today, Canada's official jobs report will be released (+250,000 jobs, jobless rate at 10.1% expected).

Meanwhile, AUD/USD plunged 1.0% to 0.7266.  Australia's July trade surplus totaled 4.61 billion Australian dollars (5.35 billion Australian dollars surplus expected), according to the government. On the other hand, China's Caixin Services PMI slipped to 54.0 in August (53.9 expected) from 54.1 in July.

More from Indices

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.