Asia Morning: U.S. Stocks Rebound on Election Eve

The U.S. dollar remains firm against other major currencies...

Trading floor 2

On Monday, on the eve of the November 3 presidential election, U.S. stocks closed in positive territory. The Dow Jones Industrial Average jumped 423 points (+1.60%) to 26925, the S&P 500 gained 40 points (+1.23%) to 3310, and the Nasdaq 100 was up 31 points (+0.29%) to 11084.

Nasdaq 100 Index (Daily Chart) : Downside Prevails

Sources: GAIN Capital, TradingView

Energy (+3.67%), Materials (+3.39%) and Capital Goods (+3.23%) sectors performed the best. Mohawk Industries (MHK +11.14%), National Oilwell Varco (NOV +8.45%) and United Rentals (URI +8.07%) were top gainers.

Twitter (TWTR -4.57%) slid further following a 21% slump last Friday.

Approximately 60% (the same as in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 15% (16% in the prior session) were trading above their 20-day moving average.

U.S. official data showed that construction spending increased 0.3% on month in September (+1.0% expected). The Markit U.S. Manufacturing Purchasing Managers' Index (final reading) posted at 53.4 for October (53.3 expected).

European stocks rebounded. The Stoxx Europe 600 rose 1.61%, Germany's DAX jumped 2.01%, France's CAC 40 rose 2.11% and the U.K.'s FTSE 100 was up 1.39%.

U.S. Treasury prices posted modest gains, as the benchmark 10-year Treasury yield eased to 0.845% from 0.855% Friday.

Spot gold advanced $16 (+0.89%) to $1,895 an ounce.

U.S. WTI crude futures (December) rebounded $1.16 (+3.24%) to $36.95 a barrel.

On the forex front, the U.S. dollar remained firm against other major currencies. The ICE Dollar Index edged up to 94.04, the highest level since September 28. 

EUR/USD eased further to 1.1642. On a daily chart, the pair keeps lingering around the lower Bollinger band.

GBP/USD ran down to 1.2855 before closing at 1.2916, down 0.26% on day.

Research firm Markit reported final readings of October Manufacturing PMI for the eurozone at 54.8 (54.4 expected), Germany at 58.2 (58.0 expected), France at 51.3 (51.0 expected), and the U.K. at 53.7 (53.3 expected).

USD/JPY rebounded for a third session climbing to 104.71 from 104.66 in the prior session.

Commodity-related currencies strengthened along with rebounding oil prices. AUD/USD gained 0.38% to 0.7055, while USD/CAD dropped 0.78% to 1.3217.

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