Asia Morning: Nasdaq Led Advance, Gold Sank Further
George Lam November 29, 2020 8:09 PM
On Friday, the three major U.S. indices closed higher, while gold was under pressure.
On Friday, the three major U.S. indices closed higher. The Dow Jones Industrial Average gained 37 points (+0.1%) to 29910, the S&P 500 added 8 points (+0.2%) to 3638 and the Nasdaq 100 Index rose 106 points (+0.9%) to 12258. Pharmaceuticals, Biotechnology & Life Sciences (+1.0%), Health Care Equipment & Services (+0.9%) and Semiconductors & Semiconductor Equipment (+0.8%) sectors led the rally.
Nasdaq 100 Index Daily Chart:
Source: GAIN Capital, TradingView
Approximately 91% of stocks in the S&P 500 Index were trading above their 200-day moving average and 82% were trading above their 20-day moving average. The VIX Index fell 0.41pt (-1.9%) to 20.84.
Regarding U.S. economic data, October pending home sales (+1.0% on month expected) and November Chicago PMI (59.2 expected) will be released later in the day.
European stocks were broadly higher. The Stoxx Europe 600 climbed 0.5%, Germany's DAX advanced 0.4%, France's CAC 40 rose 0.6%, and the U.K.'s FTSE 100 gained 0.1%.
The benchmark U.S. 10-year Treasury yield retreated to 0.8373% from 0.8816% in the prior session, halting a three-day rally.
WTI crude futures fell 0.4% to $45.53 a barrel.
Spot gold dropped 1.5% to $1,788 an ounce.
On the forex front, the U.S. dollar weakened further against its major peers, with the ICE Dollar Index dropping 0.2% to 91.79, the lowest close in 7 months.
EUR/USD rose 0.4% to 1.1962. Official data showed that the eurozone's Economic Confidence Index fell to 87.6 in November (86.0 expected) from 91.1 in October. Later today, the bloc's CPI for November will be reported (-0.1% on year expected).
GBP/USD lost 0.3% to 1.3314, down for a second straight session.
USD/JPY slipped 0.2% to 104.09. This morning, government data showed that Japan's industrial production rose 3.8% on month in October (+2.2% expected), and retail sales grew 0.4% (+0.5% expected)
Commodity-linked currencies were broadly higher against the greenback. Both AUD/USD and NZD/USD gained 0.3%, while USD/CAD fell 0.2%.
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.