Asia Morning August 10


Market sentiment remained muted amid heightened tensions between the U.S. and China....

Trading floor 2

On Friday, U.S. stocks closed mixed despite a better-than-expected jobs report. The Dow Jones Industrial Average edged up 46 points (+0.17%) to 27433, and the S&P 500 added 2 points to 3351, while the Nasdaq 100 fell 127 points (-1.13%) to 11139.

Dow Jones Industrial Average: Daily Chart

Source: GAIN Capital, TradingView

U.S. official data showed that the labor market continued to improve in July despite a surge in coronavirus cases. Nonfarm Payrolls increased by 1.76 million, higher than an addition of 1.48 million expected, and the jobless rate fell to 10.2% (10.6% expected).

However, market sentiment remained muted amid heightened tensions between the U.S. and China. U.S. President Donald Trump ordered a ban on "transactions" with the Chinese owners of the consumer apps TikTok and WeChat, effectively banning both apps in the U.S.

Transportation (+3.01%), Banks (+2.63%) and Insurance (+2.17%) sectors traded higher while Technology Hardware & Equipment (-2.02%), Software & Services (-1.43%) and Semiconductors & Semiconductor Equipment (-1.14%) sectors were under pressure.

Biogen (BIIB +10.1%), United Parcel Service (UPS +7.86%) and FedEx (FDX +6.55%) were among the top gainers.

European stocks were modestly higher. The Stoxx Europe 600 Index rose 0.29%, Germany's DAX 30 climbed 0.66%, and both France's CAC 40 and the U.K.'s FTSE 100 edged up 0.1%.

U.S. government bond prices came under pressure, as the benchmark 10-year Treasury yield rebounded to 0.562% from 0.535% Thursday.

Spot gold price took a breather sliding $31.00 (-1.5%) to $2,034 an ounce. Spot silver price lost 2.0% to $28.33 an ounce.

U.S. WTI crude oil futures (September) sank a further 1.7% to $41.22 a barrel.

On Saturday, U.S. President Donald Trump signed executive actions to extend economic aids to Americans affected by the coronavirus pandemic after negotiations at Congress broke down. The aids include jobless benefits at 400 dollars per week.

On the forex front, the U.S. dollar strengthened against its major peers, lifted by stronger-than-expected jobs report. The ICE Dollar Index rebounded 0.7% on day to 93.43, halting a three-day decline.

EUR/USD slid 0.8% to 1.1788, snapping a three-day winning streak.

GBP/USD dropped 0.7% to 1.3053.

USD/JPY bounced 0.4% to 105.93.

USD/CAD advanced 0.6% to 1.3384. Official data showed that the Canadian economy added 418,500 jobs in July (+380,000 jobs expected), while jobless rate fell to 10.9% (11.0% expected) from 12.3% in June. Later today. housing starts for July will be reported (an annualized rate of 205,000 units expected).

Other commodity-linked currencies were broadly lower against the greenback. AUD/USD sank 1.1% to 0.7158 and NZD/USD tumbled 1.3% to 0.6604.

More from Commodities

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account