Market News & Analysis
Asia Morning: US Stocks Rebound After 2-Day Decline
Ming Lam May 15, 2020 9:29 AM
The Dow Jones Industrial Average rebounded 377 points (+1.6%) to 23625, the S&P 500 gained 32 points (+1.2%) to 2852, and the Nasdaq 100 was up 94 points (+1.1%) to 9094.
Source: GAIN Capital, TradingView
Banks (+4.1%), Automobiles & Components (+3.9%) and Semiconductors & Semiconductor Equipment (+2.95%) sectors were market leaders.
Cintas Corporation (CTAS +14.7%), Leggett & Platt (LEG +9.8%), Capital One Financial (COF +9.6%), UnitedHealth Group (UNH +4.5%), and Cisco Systems (CSCO +4.5%) were among the top gainers.
On the technical side, about 24.6% (25.8% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 28.7% (44.4% in the prior session) were above their 20-day moving average.
The U.S. Labor Department reported that Initial Jobless Claims amounted to 2.981 million for the week ended May 9 (2.500 million expected). Over 36 million Americans have become unemployed for the past two months due to the coronavirus pandemic.
Import Prices fell 2.6% on month in April (-3.2% expected), the biggest fall in five years.
Later today, investors will focus on Retail Sales (-12.0% on month in April expected), the Empire Manufacturing Index (-60.0 for May expected), Industrial Production (-12.0% on month in April expected), and the University of Michigan's Consumer Sentiment Index (68.0 for May expected).
Meanwhile, heightened tensions between the U.S. and China seem not to be easing in the near future. In an interview with Fox Business Network, U.S. President Donald Trump said he was disappointed with China over its response to the coronavirus crisis, adding that he didn't want to speak to Chinese President Xi Jinping at the moment.
European stocks were broadly lower, with the Stoxx Europe 600 Index falling 2.2%. Germany's DAX dropped 2.0%, France's CAC declined 1.7%, and the U.K.'s FTSE 100 was down 2.8%.
U.S. Treasury prices remained firm, as the benchmark 10-year Treasury yield fell to 0.617% from 0.648% Wednesday.
Spot gold price charged 15 dollars higher (+0.9%) to $1730 an ounce, posting a three-day rally.
Oil prices rebounded, as U.S. WTI crude oil futures (June) jumped 9.0% to $27.56 a barrel, the highest level since April 3.
On the forex front, the ICE U.S. Dollar Index gained 0.1% on day to 100.26. In an interview with Fox Business Network, U.S. President Donald Trump said "it is a great time to have a strong dollar".
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.