Asia Morning: U.S. Stocks Surge Despite Election Standstill

The Nasdaq 100 Index soars 497 points or 4.41%...

Trading floor 2

On Wednesday,  U.S. stocks extended their strong gains to a third session. The Dow Jones Industrial Average rose 367 points (+1.34%) to 27847, the S&P 500 increased 74 points (+2.20%) to 3443, and the Nasdaq 100 soared 497 points (+4.41%) to 11777.


S&P 500 Index (Daily Chart) : Bullish Gap

Sources: GAIN Capital, TradingView



The presidential race between Donald Trump and Joe Biden remains unsettled, while all eyes are now on vote counting in Michigan and Pennsylvania. Both sides are expected to take legal actions to challenge results in states, and it could take days or weeks to decide who the winner is.

Media (+5.2%), Pharmaceuticals, Biotechnology & Life Sciences (+5.08%) and Software & Services (+4.16%) sectors performed the best. Biogen (BIIB +43.97%) became the top gainer after the U.S. Food and Drug Administration (FDA) posted a positive report on the company's Alzheimer's drug aducanumab.

Approximately 71% (67% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 51% (33% in the prior session) were trading above their 20-day moving average.

Regarding U.S. economic data, the Automatic Data Processing's employment report showed that the economy added 365,000 private jobs in October (+643,000 expected). The Institute for Supply Management (ISM) Services Index posted at 56.6 for October (57.5 expected).

European stocks stayed strong. The Stoxx Europe 600 rose 2.05%, Germany's DAX climbed 1.95%, France's CAC 40 jumped 2.44% and the U.K.'s FTSE 100 was up 1.67%.

U.S. Treasury prices rebounded, as the benchmark 10-year Treasury yield retreated to 0.768% from 0.884% Tuesday.

Spot gold fell $5 (-0.27%) to $1,904 an ounce.

U.S. WTI crude futures (December) advanced a further $1.36 (+3.61%) to $39.02 a barrel.

The forex market saw a choppy session as the election was too close to call. The ICE Dollar Index swung up to 94.30 before coming down to close at 93.44, down 0.11% on day.

EUR/USD sank to 1.1603 before rebounding to close at 1.1723, compared with 1.1715 in the prior session.

USD/JPY failed to stay above 105.00 and closed at 104.52.

GBP/USD lost the 1.3000 level again as it slipped 0.53% to 1.2989.

AUD/USD managed to added 0.22% to 0.7180.

USD/CNH (offshore yuan) ended 0.86% to 6.6233 posting a 5-day losing streak.


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 Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.