Asia Morning: US Stocks Rally, ADP Jobs in Focus

On Tuesday, U.S. stocks closed higher and ADP private jobs report for August will be today's focus...

Trading floor 3

On Tuesday, U.S. stocks closed higher. S&P 500 rose 26 points (+0.8%) to 3526 and Nasdaq 100 climbed 182 points (+1.5%) to 12292, both at fresh records. The Dow Jones Industrial Average gained 215 points (+0.8%) to 28645.

S&P 500 daily chart:

Source: Gain Capital, TradingView


Technology Hardware & Equipment (+3.22%), Food & Staples Retailing (+2.94%) and Materials (+2.75%) sectors led the rally. Approximately 62.4% of stocks in the S&P 500 Index were trading above their 200-day moving average and 61.4% were trading above their 20-day moving average.

Regarding U.S. economic data, ISM Manufacturing PMI rose to 56.0 in August (54.8 expected) from 54.2 in July, and construction spending grew 0.1% on month in July (+1.0% expected).

U.S. ADP private jobs report for August will be today's focus (+1 million expected). Meanwhile, July factory orders (+6.1% on month expected) and the Federal Reserve's Beige Book will also be released.

European stocks were mixed. The Stoxx Europe 600 Index advanced 0.2% and Germany's DAX 30 added 0.2%, while France's CAC 40 fell 0.2% and the U.K.'s FTSE 100 sank 1.7%.

The benchmark U.S. 10-year Treasury yield slid to 0.6689% from 0.7048% Tuesday, down for a third straight session.

WTI crude oil futures (October) advanced 0.4% to $42.76 a barrel. The American Petroleum Institute (API) reported that U.S. crude-oil inventories dropped 6.36 million barrels in week ending August 28 (-1.89 million barrels expected).

Spot gold edged up 0.1% to $1,970 an ounce.

On the forex front, the ICE U.S. Dollar Index marked a day-low of 91.75 before closing up 0.1% to 92.31.

EUR/USD slipped 0.1% to 1.1919, after briefly breaking above the 1.2000 level. European Central Bank Executive Board member Philip Lane said "the euro-dollar rate does matter". On the other hand, official data showed that the eurozone's CPI fell 0.2% on year in August (+0.2% expected), while jobless rate climbed to 7.9% in July (8.0% expected) from 7.7% in June.

GBP/USD gained 0.2% to 1.3393.

USD/JPY was little changed at 105.93. 

AUD/USD was broadly flat at 0.7375. The Reserve Bank of Australia kept its benchmark rate unchanged at 0.25% as expected.

USD/CAD edged up 0.1% to 1.3062, snapping a five-day decline. The Markit Canada Manufacturing PMI advanced to 55.1 in August from 52.9 in July.

Meanwhile, NZD/USD climbed 0.4% to 0.6761. New Zealand's second quarter Terms of Trade Index rose 2.5% on quarter (+0.6% expected), according to the government.

More from Indices

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.