Asia Morning: Focus on the U.S., China & Hong Kong

Market focus remained on Hong Kong and heightened tensions between the U.S. and China...

Trading floor 2

On Friday U.S. stocks pared early losses to close with modest gains. Market focus remained on Hong Kong and heightened tensions between the U.S. and China. China announced plans to impose a "new" national-security law on Hong Kong, which are widely expected to erode the city's autonomy. U.S. President Donald Trump said his country would react strongly if  China follows through on those plans. 

The Dow Jones Industrial Average was little changed at 24465, the S&P 500 edged up 6 points (+0.2%) to 2955, and the Nasdaq 100 was up 36 points (+0.4%) to 9414.


Source: GAIN Capital, TradingView

Real Estate (+2.21%), Utilities (+1.13%) and Household & Personal Products (+0.85%) sectors performed the best, while Banks (-0.8%), Energy (-0.67%) and Consumer Services (-0.47%) sectors were laggards.

Arconic (ARNC +13.83%), Coty (COTY +12.61%), American Tower (AMT +6.25%) and Agilent Technologies (A +5.24%) were top gainers, while Hewlett Packard Enterprise (HPE -11.49%), Foot Locker Inc (FL -8.49%) and Wynn Resorts (WYNN -5.89%) lost the most. 

On the technical side, about 32.0% (35.0% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 65.7% (73.1% in the prior session) were above their 20-day moving average.

The U.S. Market will be closed today to observe Memorial Day.

European stocks were mixed, with the Stoxx Europe 600 Index ending flat. Germany's DAX edged up less than 0.1%, the U.K.'s FTSE 100 dropped 0.4%, while France's CAC was little changed.

U.S. Treasury prices remained firm, as the benchmark 10-year Treasury yield eased further to 0.659%.

Spot gold price rebounded $8 (+0.5%) to $1,734 an ounce.

Oil prices softened on concerns that demand could be hurt by the U.S.-China tensions. U.S. WTI crude oil futures (July) dropped 2.0% to $33.25.

On the forex front, the ICE U.S. Dollar Index rebounded for a second straight session, climbing 0.5% on day to 99.86.

EUR/USD dropped 0.4% to 1.0902. European Central Bank's latest monetary policy accounts showed that officials agreed that "a swift V-shaped recovery could probably already be ruled out at this stage" and "the Governing Council would have to stand ready to adjust the Pandemic Emergency Purchase Program and potentially other instruments if it saw that the scale of the stimulus was falling short of what was needed".


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.