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Asia Morning: US Stocks, Oil Higher as Sentiment Keeps Improving

On Monday U.S. stocks stabilized after two losing sessions. Investors were encouraged to see that, as countries relaxed coronavirus-induced restrictions, oil prices rallied on expectations of rebounding demand. 

The Dow Jones Industrial Average edged up 26 points (+0.1%) to 23,749, the S&P 500 added 12 points (+0.4%) to 2,842, and the Nasdaq 100 rebounded 115 points (+1.3%) to 8,834.

Source: GAIN Capital, TradingView

Energy (+3.71%), Software & Services (+1.64%), Semiconductors & Semiconductor Equipment (+1.22%) sectors gained the most.

Phillips 66 (PSX +10.7%), Valero Energy (VLO +8.3%) and Marathon Petroleum (MPC +7.8%) were top gainers.

Tyson Foods (TSN -7.8%) and Whirlpool (WHR -5.5%) showed heavy losses. 

American Airlines (AAL -7.7%), Delta Air Lines (DAL -6.4%), United Airlines (UAL -5.1%) and Southwest Airlines (LUV -5.7%) all crashed to the bottom of the S&P after Berkshire Hathaway (BRKA -2.5%) said on Saturday that it had sold all stakes in the four major U.S. airlines.

On the technical side, about 21.6% (25.8% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 62.4% (83.2% in the prior session) were above their 20-day moving average.

U.S. official data showed that Factory Orders dropped 10.3% on month in March (-9.2% on month expected) and Durable Goods Orders (final reading) fell 14.7% (-14.4% expected).

Later today, March U.S. Trade Balance (deficit of 44.2 billion dollars expected), April Markit U.S. Services Purchasing Mangers' Index (final reading, 27.0 expected) and Institute for Supply Management's (ISM) Non-Manufacturing Index (37.8 expected) will be reported.

European stocks got heavier, with the Stoxx Europe 600 Index slumping 2.7%. Germany's DAX tumbled 3.6%, France's CAC plunged 4.2%, and the U.K.'s FTSE 100 edged down 0.2%.

The benchmark 10-year U.S. Treasury yield settled slightly lower at 0.636%.

Spot gold gained 2 dollars to $1,700 an ounce.

U.S. WTI crude oil futures (June) advanced 3.1% to $20.39 a barrel, and Brent crude oil futures rose 2.9% to $27.20 a barrel.

On the forex front, the U.S. dollar stabilized against its major peers on Monday, with the ICE Dollar Index rebounding 0.4% on day to 99.51.


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