Asian Morning Brief: APR 21 (TUE)

On Monday U.S. stocks closed lower as market sentiment was impacted by oil price collapsing into negative territory...

On Monday U.S. stocks closed lower as market sentiment was impacted by oil price collapsing into negative territory.

The Dow Jones Industrial Average dropped 592 points (-2.4%) to 23,650, the S&P 500 fell 51 points (-1.8%) to 2,823, and the Nasdaq 100 was down 105 points (-1.2%) to 8,726.

Sourec: GAIN Capital, TradingView

Utilities (-3.89%), Real Estate (-3.74%) and Energy (-3.29%) sectors showed the worst performance.

Macy's (M, -10.3%), Macerich Company (MAC, -10.2%), Vornado Realty Trust (VNO, -9.3%), L Brands (LB, -9.0%) showed significant losses.

Also, Walt Disney (DS, -4.1%), Gilead Sciences (GILD -3.3%) and United Airlines (UAL -4.4%) were among the losers.

Meanwhile, Netflix (NFLX, +3.4%), DuPont (DD, +3.6%), FLIR Systems (FLIR, +14.1%) performed the best.

On the technical side, about 26.4% (22.2% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 96.8% (82.2% in the prior session) were above their 20-day moving average.

Later today, official data on U.S. Existing Homes Sales for March will be released (an annualized rate of 5.25 million units expected).

European stocks were broadly higher, with the Stoxx Europe 600 Index rising 0.7%. Both Germany's DAX and the U.K.'s FTSE 100 added 0.5%, and France's CAC was up 0.7%.

U.S. Treasurys stabilized in price, as the benchmark 10-year U.S. Treasury yield eased to 0.625% from 0.655% Friday.

Spot gold rebounded 12 dollars (+0.8%) to $1,690 an ounce.

The oil market saw an historic event during the session. The May contract for West Texas Intermediate (WTI) futures collapsed to zero before ending the day at minus-$37.63 a barrel, meaning producers have to pay buyers to take oil away or store it. This is the first time in recorded history that crude has dropped into negative territory, far surpassing the 1986 low of $10.20 a barrel.

Meanwhile, the June WTI contract slumped 18.0% to $20.43 a barrel, and Brent crude oil fell 8.9% to $25.57 a barrel.

Sourec: GAIN Capital, TradingView

On the forex front, the U.S. dollar firmed against its major peers, with the ICE Dollar Index gaining 0.2% on day to 99.95.

EUR/USD slipped 0.1% to 1.0865. Spain's central bank said the country's GDP could decline by 6.8% to 12.4% this year. Later today, the German ZEW Current Situation Index for April will be released (-75.0 estimated).

GBP/USD slid 0.5% to 1.2442. Investors will focus on the U.K. jobless rate for the three months to February due later in the day (steady at 3.9% expected).

USD/JPY edged up 0.1% to 107.68. 

The Canadian dollar weakened against the greenback on slumping oil prices. USD/CAD rose 0.9% to 1.4124. On the other hand, official data showed that Canada's wholesale trade sales grew 0.7% on month in February (-0.4% estimated). Later today, retail sales data for February will be released (+0.3% on month expected).

Meanwhile, NZD/USD advanced 0.2% to 0.6044. New Zealand Prime Minister Jacinda Ardern said the coronavirus alert level 4 lockdown in the country will end in a week, where key sectors will resume operations.

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

Open an Account