Asia Morning: U.S. Stocks Down for Third Session
Ming Lam October 15, 2020 9:03 PM
U.S. Initial Jobless Claims unexpectedly jump to 898,000 (825,000 expected)...
On Thursday, U.S. stocks slipped for a third session. The Dow Jones Industrial Average eased 19 points (-0.07%) to 28494, the S&P 500 declined 5 points (-0.15%) to 3483, and the Nasdaq 100 lost 86 points (-0.72%) to 11898.
S&P 500 Index (Daily Chart): Bullish Above 3390
Sources: GAIN Capital, TradingView
U.S. official data showed that Initial Jobless Claims unexpectedly jumped to 898,000 (825,000 expected), at the same time the government and Congress still failed to agree on a economic stimulus deal.
Pharmaceuticals, Biotechnology & Life Sciences (-1.69%), Media (-0.71%) and Software & Services (-0.65%) sectors lost the most. Vertex Pharmaceuticals (VRTX -20.70%), Boston Scientific (BSX -4.03%) and United Airlines (UAL -3.82%) were top losers.
Facebook (FB -2.00%) declined after Republican Senator Josh Hawley asked CEO Mark Zuckerberg to testify before the Judiciary Subcommittee on Crime and Terrorism after the social media platform allegedly censor a New York Post story on Hunter Biden, the son of Democratic presidential candidate Joe Biden.
New York manufacturing index posted a weaker reading of 10.5 (14.0 expected).
European stocks remained under pressure. The Stoxx Europe 600 Index slumped 2.08%, Germany's DAX 30 shed 2.49%, France's CAC 40 sank 2.11%, and the U.K.'s FTSE 100 was down 1.73%.
U.S. Treasury prices softened, as the benchmark 10-year Treasury yield climbed to 0.734% from 0.721% Wednesday.
Spot gold gained $6.02 (+0.32%) to $1,907 an ounce.
U.S. WTI crude futures (November) edged down $0.06 (-0.15%) to $40.98 a barrel. The U.S. Energy Information Administration Crude reported that crude stockpiles fell by 3.8 million barrels last week, more than a reduction of 2.8 million barrels expected.
On the forex front, the U.S. dollar was firm against other major currencies. The ICE Dollar Index rose 0.40% to 93.78.
GBP/USD dropped 0.77% to 1.2912. Brexit talks made no progress as European Union negotiators called on the U.K. side to make further concessions.
EUR/USD fell 0.32% to 1.1707. Meanwhile, the COVID-19 pandemic in Europe worsened. France is imposing a new curfew in Paris to curb the rise of infection cases, and the U.K. is implementing a three-tiered lockdown system.
USD/JPY rebounded 0.26% 105.44.
AUD/USD sank 0.96% to 0.7093. Official data showed that 29,500 Australians lost their jobs in September (40,000 expected) while the jobless rate ticked up to 6.9% (7.0% expected).
USD/CAD added 0.58% to 1.3218.
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.