Asia Morning: U.S. Stocks Suffer 3% Sell-off
Ming Lam October 28, 2020 9:24 PM
Investors are deeply worried that the surge in coronavirus cases worldwide would lead to further lockdown measures...
On Wednesday, U.S. stocks encountered another sell-off within the week. The Dow Jones Industrial Average tumbled 943 points (-3.43%) to 26520, the S&P 500 slumped 119 points (-3.53%) to 3271, and the Nasdaq 100 plunged 456 points (-3.93%) to 11142.
Nasdaq 100 (Daily Chart) : Turning Down
Sources: GAIN Capital, TradingView
Investors were deeply worried that the surge in coronavirus cases worldwide, particularly in Europe and the U.S., would lead to further lockdown measures.
Transportation (-4.86%), Software & Services (-4.47%) and Media (-4.45%) sectors performed the worst. CH Robinson Worldwide (CHRW -11.45%), Carnival Corp (CCL -10.61%), Unum Group (UNM -9.21%) and United Parcel Service (UPS -8.82%) were top losers. Microsoft (MSFT -4.96%) and Boeing Co (BA -4.57%) also fell.
General Electric (GE +4.51%) and Automatic Data Processing (ADP +6.2%) gained after reporting better-than-expected results.
Approximately 65% (70% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 30% (42% in the prior session) were trading above their 20-day moving average.
The VIX Index, Wall Street's fear gauge, jumped a further 6.93 points (+20.78%) to 40.28.
Later today, Apple (AAPL -4.63%), Amazon.com (AMZN -3.76%), Alphabet (GOOGL -5.51%) and Facebook (FB -5.51%) will report quarterly earnings.
European stocks ended deep in the red. The Stoxx Europe 600 Index slumped 2.95%, Germany's DAX 30 plunged 4.17%, France's CAC 40 tumbled 3.37%, and the U.K.'s FTSE 100 sank 2.55%.
U.S. Treasury prices were little changed, as the benchmark 10-year Treasury yield ticked up to 0.780%.
Spot gold dropped $31.23 (-1.64%) to $1,876 an ounce.
U.S. WTI crude futures (December) fell $2.23 (-5.64%) to $37.34 a barrel.
On the forex front, the U.S. dollar strengthened further against other major currencies as investors sought safe-haven assets amid a sell-off in the stock market. The ICE Dollar Index jumped 0.53% to 93.43, back above both 20-day and 50-day moving averages.
EUR/USD dropped 0.42% to 1.1746 extending its decline to a fourth session. Governments of Germany and France are imposing new lockdowns to curb rising virus cases.
GBP/USD lost the key 1.3000 level as it slipped 0.46% to 1.2983.
USD/JPY edged down 0.09% to 104.32, while AUD/USD plunged 1.19% to 0.7044,
USD/CAD surged 1.05% to 1.3323. As expected, Canada's central bank kept its key interest rate unchanged at 0.25%, saying that such a low rate would stay until 2023.
Meanwhile, the Turkish lira sank to a record low of 8.3287 against the dollar.
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.