Asia Morning: US Stocks Sell-off Continues

On Tuesday, U.S. stocks closed sharply lower as tech-led sell-off continued. Nasdaq 100 posted a three-day decline totaled 10.9%...

Trading floor 2

On Tuesday, U.S. stocks closed sharply lower as tech-led sell-off continued. Nasdaq 100 slumped 553 points (-4.8%) to 11068, posting a three-day decline totaled 10.9%. The Dow Jones Industrial Average plunged 632 points (-2.3%) to 27500 and S&P 500 sank 95 points (-2.8%) to 3331.

Nasdaq 100 daily chart:

Source: Gain Capital, TradingView

Technology Hardware & Equipment (-5.85%), Semiconductors & Semiconductor Equipment (-4.63%) and Software & Services (-3.85%) sectors led the decline. Approximately 63.6% of stocks in the S&P 500 Index were trading above their 200-day moving average and 48.1% were trading above their 20-day moving average.

European stocks were broadly lower. The Stoxx Europe 600 Index dropped 1.4%, Germany's DAX 30 lost 1.0%, France's CAC 40 slid 1.6% and U.K.'s FTSE 100 was down 0.1%.

The benchmark U.S. 10-year Treasury yield fell to 0.6788% from 0.7180% in the prior session.

WTI crude oil futures (October) plummeted 7.6% to $36.76 a barrel, the lowest level since June, amid demand worries.

Spot gold marked a day-low near $1,906 before ending 0.1% lower at $1,932, as stock market sell-off spurred demand for the safe-haven asset.

On the forex front, the ICE U.S. Dollar Index climbed 0.5% on day to 93.52, the highest level since mid-August.

EUR/USD slid 0.5% to 1.1762. Official data showed that the eurozone's second quarter GDP growth was confirmed at -14.7% on year (-15.0% expected).

GBP/USD slumped 1.5% to 1.2964, the lowest level since July 30. Jonathan Jones, head of the U.K. government legal service, has resigned and it is reported that his departure was due to Prime Minister Boris Johnson's plan to overwrite parts of the Northern Ireland protocol. Brandon Lewis, secretary of state for Northern Ireland, said the plan "does break international law in a very specific and limited way".

USD/JPY fell 0.2% to 106.03.

USD/CAD jumped 1.1% to 1.3244, pressured by slumping oil prices. Meanwhile, the Bank of Canada is expected to keep its benchmark rate unchanged at 0.25% later today.

Other commodity-linked currencies also weakened against the greenback, AUD/USD sank 1.0% to 0.7203 and NZD/USD plunged 1.2% to 0.6609.

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.