Asia Morning: Tech Giants Gain as CEOs Testify in Congress
Ming Lam July 30, 2020 2:20 AM
Investors were also encouraged by the Federal Reserve's stance to keep supporting economic recovery amid the coronavirus pandemic...
On Wednesday, U.S. stocks closed higher. The Dow Jones Industrial Average rose 160 points (+0.61%) to 26539, the S&P 500 advanced 40 points (+1.24%) to 3258, and the Nasdaq 100 jumped 130 points (+1.24%) to 10662.
Nasdaq 100 Index: Daily Chart
Source: GAIN Capital, TradingView
Investors were encouraged by the Federal Reserve's stance to keep supporting economic recovery amid the coronavirus pandemic.
Banks (+2.92%), Health Care Equipment & Services (+2.51%) and Transportation (+2.34%) sectors performed the best. L Brands (LB +35.36%), Advanced Micro Devices (AMD +12.54%), CH Robinson Worldwide (CHRW +9.33%) and Gap Inc (GPS +8.35%) were top gainers.
Tech giants stocks - Amazon (AMZN +1.11%), Apple (AAPL +1.92%), Facebook (FB +1.38%) and Alphabet (GOOG +1.45%) - gained as their CEOs testified at a Congress antitrust hearing in defense of their business practices.
On the technical side, about 54.6% (55.0% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 67.5% (75.4% in the prior session) were trading above their 20-day moving average.
As expected, the Federal Reserve kept its benchmark interest rates unchanged near zero. The central bank said in a statement: "The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, (...) The coronavirus outbreak is causing tremendous human and economic hardship across the United States and around the world."
Later today, U.S. second-quarter GDP readings will be released (an annualized declining rate of -34.8% on quarter expected). The Labor Department will report Initial Jobless Claims for the week ended July 25 (an increase to 1.430 million expected).
European stocks closed mixed. The Stoxx Europe 600 Index was little changed, Germany's DAX 30 edged down 0.10%, while France's CAC 40 gained 0.60%, and the U.K.'s FTSE 100 closed flat.
The benchmark U.S. 10-year Treasury yield was little changed at 0.581%.
Spot gold price advanced $12.00 (+0.62%) to $1,970, a fresh record close. Goldman Sachs has raised its gold price forecast for the next 12 months to $2,300 an ounce from $2,000 previously. However, spot silver price was down for a second day as it decline 0.5% to $24.31 an ounce.
Oil prices climbed after the U.S. Energy Information Administration reported an unexpected reduction of 1.2 million barrels in crude-oil stockpiles last week. U.S. WTI crude oil futures (September) rebounded 0.6% to $41.27 a barrel.
On the forex front, the U.S. dollar resumed its weakness as the Federal Reserve pledged its continuous support to U.S. economic recovery. The ICE U.S. Dollar Index sank 0.5% to 93.26.
EUR/USD charged higher challenging the key level of 1.1800, a level last seen in early October.
GBP/USD struck against the key level of 1.3000 on the upside, its highest level since March. The Bank of England reported 40,000 Mortgage Approvals for June, higher than 35,000 expected.
USD/JPY dipped below 105.00.
AUD/USD advanced to 0.7190, the highest level since early April. Official data showed that Australia's 2Q Consumer Prices declined 0.3% on year (vs -0.4% expected) and fell 1.9% on quarter (vs -2.0% expected).
Disclaimer: GAIN Capital UK Limited (trading as "Forex.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, Forex.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by Forex.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although Forex.com is not specifically prevented from dealing before providing this material, Forex.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For further details see our full non-independent research disclaimer and quarterly summary.