On Monday, U.S. stocks surged with the Nasdaq 100 Index closing 262 points higher (+2.54%) at a fresh record of 10604. The Dow Jones Industrial Average rose 459 points (+1.78%) to 26287, and the S&P 500 advanced 49 points (+1.59%) to 3179.
Dow Jones Industrial Average: Daily Chart
Source: GAIN Capital, TradingView
Prior to the session, China's Shanghai Composite Index soared 5.71% and Hong Kong's Hang Seng Index jumped 3.81%. Investors seemed to be convinced that re-opening economies have kissed goodbye to coronavirus-induced lockdowns forever.
Retailing (+3.57%), Technology Hardware & Equipment (+2.47%) and Consumer Services (+2.43%) sectors were market leaders. Amazon.com (AMZN +5.77% to $3,057.04), Apple (AAPL +2.67% to $373.85) and Microsoft (MSFT +2.15% to $210.70) closed at record levels.
On the technical side, about 43.3% (41.3% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 39.3% (32.3% in the prior session) were trading above their 20-day moving average.
Regarding U.S. economic data, the Institute for Supply Management (ISM) Non-Manufacturing Index rose to 57.1 in June (50.2 expected).
European stocks advanced further. The Stoxx Europe 600 Index gained 1.58%. Germany's DAX 30 rose 1.64%, France's CAC 40 climbed 1.49%, and the U.K.'s FTSE 100 was up 2.09%.
The benchmark 10-year Treasury yield stepped up to 0.683% from 0.672% last Thursday.
Spot gold price increased $8.00 (+0.5%) to $1,784 an ounce, the highest close since September 2011.
U.S. WTI crude oil futures (August) edged two cents down to settle at $40.63 a barrel.
On the forex front, the ICE U.S. Dollar Index lost 0.4% on day to a two-week low of 96.77.
EUR/USD rose 0.6% to 1.1314. Official data showed that the eurozone's retail sales grew 17.8% on month in May (+15.0% expected) and/while German factory orders increased 10.4% (+15.4% expected). Later today, German industrial production for May will be released (+10.5% on month expected).
GBP/USD gained 0.1% to 1.2495. The Markit U.K. Construction PMI bounced to 55.3 June (46.0 expected) from 28.9 in May.
USD/JPY fell 0.3% to 107.36. Government data showed that Japan's household spending declined 16.2% on year in May (-11.8% expected).
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.