Asia Morning: U.S. Stocks Post Modest Gains on Stimulus Optimism

Tesla (TSLA) closes at an all-time high...

Trading floor 2

On Thursday, U.S. stocks posted modest gains. The Dow Jones Industrial Average rose 44 points (+0.15%) to 29483, the S&P 500 added 14 points (+0.39%) to 3581, and the Nasdaq 100 gained 90 points (+0.76%) to 11985.

Nasdaq 100 Index (Daily Chart) : Still Bullish

Sources: GAIN Capital, TradingView

Stocks bounced after Senate Minority Leader Chuck Schumer said Senate Majority Leader Mitch McConnell had agreed to revive fiscal stimulus talks.

Energy (+1.53%), Semiconductors & Semiconductor Equipment (+1.32%) and Food & Staples Retailing (+1.13%) sectors put up the best performance. Coty Inc (COTY +17.92%), L Brands (LB +17.67%), Mylan (VTRS +11.86%) and Devon Energy (DVN +6.27%) were top gainers.

Tesla (TSLA +2.60%) closed at an all-time high of $499.27.
Approximately 89% (90% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 80% (85% in the prior session) were trading above their 20-day moving average.

U.S. official data showed that Initial Jobless Claims unexpectedly rose to 742,000 (700,000 expected), while Existing Homes Sales jumped to an annualized rate of 6.85 million units in October (6.47 million units expected), the most since 2006. The Conference Board Leading Index rose 0.7% on month in October (as expected). 
European stocks were broadly lower. The Stoxx Europe 600 fell 0.75%, Germany's DAX lost 0.88%, France's CAC 40 dropped 0.67%, and the U.K.'s FTSE 100 was down 0.80%.

U.S. Treasury prices traded higher, as the benchmark U.S. 10-year Treasury yield declined to 0.850% from 0.880% Wednesday.

Spot gold fell $4 (-0.26%) to $1,867 an ounce.

U.S. WTI crude futures (January) rose $0.14 (+0.33%) to $41.96 a barrel.

The U.S. dollar gave up early gains to trade lower against most other major currencies. The ICE Dollar Index closed lower at 92.30 extending its decline to a sixth session.

EUR/USD pared losses to close 0.18% higher at 1.1875. The pair remains at levels above both 20-day and 50-day moving averages.

GBP/USD edged lower to 1.3262. On a daily chart, the pair stays at elevated levels close to the upper Bollinger band.

USD/JPY stepped lower to 103.74 posting a six-day losing streak.

USD/CHF eased 0.08% to 0.9106, and USD/CAD edged down 0.07% to 1.3072.

AUD/USD declined 0.23% to 0.7288. According to official data, Australia's economy added 178,800 jobs in October (-27,500 jobs expected), while the jobless rate edged up to 7.0% (7.1% expected).

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