Asia Morning: Tech Stocks Lead U.S. Market Rebound
Ming Lam July 27, 2020 9:24 PM
Investors were cheered up by a new $1 trillion stimulus bill proposed by Republican Senators...
On Monday, U.S. stocks rebounded. The Dow Jones Industrial Average rose 114 points (+0.43%) to 26584, the S&P 500 added 23 points (+0.74%) to 3239, and the Nasdaq 100 jumped 191 points (+1.82%) to 10674.
Nasdaq 100 Index: Daily Chart
Source: GAIN Capital, TradingView
Investors were cheered up by a new $1 trillion stimulus bill proposed by Republican Senators.
Technology Hardware & Equipment (+2.26%), Semiconductors & Semiconductor Equipment (+1.79%) and Materials (+1.41%) sectors performed the best. Tech giants like Apple (AAPL +2.37%), Amazon (AMZN +1.54%) and Alphabet (GOOG +1.21%) closed higher.
On the technical side, about 55.4% (56.4% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 76.2% (83.2% in the prior session) were trading above their 20-day moving average.
The U.S. Commerce Department reported that Durable Goods Orders (preliminary readings) increased 7.3% on month in June (+6.9% expected).
Due later today is the Conference Board's Consumer Confidence Index (a fall to 94.7 in July expected).
European stocks were broadly lower. The Stoxx Europe 600 Index declined 0.31%, France's CAC 40 fell 0.34% and the U.K.'s FTSE 100 was down 0.31%. Germany's DAX ended flat.
The benchmark U.S. 10-year Treasury yield climbed further to 0.609% from 0.589% Friday.
Spot gold price showed no signs of fatigue as it surged $36.00 (+1.9%) to $1,942 an ounce, a record close. Spot silver price soared 8.1% to $24.58 an ounce, the highest level since August 2013.
U.S. WTI crude oil futures (August) advanced a further 0.8% to $41.60 a barrel.
On the forex front, the U.S. dollar kept showing weakness as traders expected the Federal Reserve, which is to hold its regular meeting this week, to maintain its easing policies. The ICE U.S. Dollar Index sank a further 0.7% to 93.65, the lowest close since June 2018.
EUR/USD continued to show upward momentum jumping 0.8% to 1.1751, the highest level since September 2018. Germany's IFO Business Climate Index rose to 90.5 in July (89.3 expected) and Expectations Index was up to 97.0 (93.4 expected).
GBP/USD increased 0.7% to 1.2881, extending its winning streak to a seventh session.
USD/JPY accelerated to the downside after losing the key 106.00, sinking 0.7% to 105.37, the lowest level since March 12.
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.