Asia Morning: DJIA Extends Gains, GBP/USD Weighs by Brexit Uncertainty

On Wednesday, the three major U.S. indices closed mixed. Meanwhile, British pound was subdued amid Brexit uncertainty.

Trading floor 1

On Wednesday, the three major U.S. indices closed mixed. The Dow Jones Industrial Average gained 59 points (+0.2%) to 298883 and the S&P 500 rose 6 points (+0.2%) to 3669, while Nasdaq 100 was flat at 12456.

Dow Jones Industrial Average Daily Chart:

Source: GAIN Capital, TradingView

Energy (+3.2%), Banks (+1.7%) and Health Care Equipment & Services (+1.1%) were leading sectors, while Materials (-1.4%), Commercial & Professional Services (-1.4%) and Real Estate (-1.1%) sectors were the worst performers.

Approximately 93% of stocks in the S&P 500 Index were trading above their 200-day moving average and 80% were trading above their 20-day moving average. The VIX Index rose 0.38pt (+1.8%) to 21.15

Regarding U.S. economic data, ADP private jobs increased 307,000 in November (+440,000 expected). Later today, initial jobless claims for the week ending November 28 (0.77 million expected) and the ISM Services Index for November (55.8 expected) will be released.

European stocks were mixed. The Stoxx Europe 50 fell 0.1%, Germany's DAX dropped 0.5% and France's CAC 40 was little changed, while the U.K.'s FTSE 100 surged 1.2%.

The benchmark U.S. 10-year Treasury yield advanced to 0.9360% from 0.9260% Tuesday, up for a third straight session.

WTI crude futures rebounded 1.6% to $45.28 a barrel, snapping a three-day decline. The U.S. Energy Information Administration (EIA) reported that U.S. crude oil inventories dropped 0.68 million barrels in the week ending November 27 (-1.90 million barrels expected).

Spot gold climbed 0.9% to $1,831 an ounce.

On the forex front, the U.S. dollar weakened further against its major peers, with the ICE Dollar Index dropping 0.3% to 91.02. House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer support immediate stimulus talks and are planning for a 908 billion dollars aid proposal.

EUR/USD gained 0.4% to 1.2112. Official data showed that German retail sales grew 2.6% on month in October (+1.2% expected). Later today, the eurozone's retail sales for October will be released (+0.7% on month expected).

GBP/USD lost 0.3% to 1.3372. It is reported that European ambassadors warned chief Brexit negotiator Michel Barnier not to make further concessions to Britain or such a deal would be vetoed by E.U. leaders.

USD/JPY edged up 0.2% to 104.49.

AUD/USD rose 0.6% to 0.7416, the highest level since August 2018. Government data showed that the Australian economy contracted 3.8% on year in the third quarter (-4.4% expected).

Other commodity-linked currencies were broadly higher against the greenback. NZD/USD added 0.1% to 0.7070, while USD/CAD slipped 0.1% to 1.2919.

More from Indices

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 Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.