Asia Morning: U.S. Stocks Surge as Confidence Builds

,

Investors seemed to be convinced that re-opening economies have kissed goodbye to coronavirus-induced lockdowns forever...

Trading floor 2

On Monday, U.S. stocks surged with the Nasdaq 100 Index closing 262 points higher (+2.54%) at a fresh record of 10604. The Dow Jones Industrial Average rose 459 points (+1.78%) to 26287, and the S&P 500 advanced 49 points (+1.59%) to 3179.

Dow Jones Industrial Average: Daily Chart

Source: GAIN Capital, TradingView


Prior to the session, China's Shanghai Composite Index soared 5.71% and Hong Kong's Hang Seng Index jumped 3.81%. Investors seemed to be convinced that re-opening economies have kissed goodbye to coronavirus-induced lockdowns forever.


Retailing (+3.57%), Technology Hardware & Equipment (+2.47%) and Consumer Services (+2.43%) sectors were market leaders. Amazon.com (AMZN +5.77% to $3,057.04), Apple (AAPL +2.67% to $373.85) and Microsoft (MSFT +2.15% to $210.70) closed at record levels. 

On the technical side, about 43.3% (41.3% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 39.3% (32.3% in the prior session) were trading above their 20-day moving average.

Regarding U.S. economic data, the Institute for Supply Management (ISM) Non-Manufacturing Index rose to 57.1 in June (50.2 expected).

European stocks advanced further. The Stoxx Europe 600 Index gained 1.58%. Germany's DAX 30 rose 1.64%, France's CAC 40 climbed 1.49%, and the U.K.'s FTSE 100 was up 2.09%.

The benchmark 10-year Treasury yield stepped up to 0.683% from 0.672% last Thursday.

Spot gold price increased $8.00 (+0.5%) to $1,784 an ounce, the highest close since September 2011.

U.S. WTI crude oil futures (August) edged two cents down to settle at $40.63 a barrel.

On the forex front, the ICE U.S. Dollar Index lost 0.4% on day to a two-week low of 96.77.

EUR/USD rose 0.6% to 1.1314. Official data showed that the eurozone's retail sales grew 17.8% on month in May (+15.0% expected) and/while German factory orders increased 10.4% (+15.4% expected). Later today, German industrial production for May will be released (+10.5% on month expected).

GBP/USD gained 0.1% to 1.2495. The Markit U.K. Construction PMI bounced to 55.3 June (46.0 expected) from 28.9 in May.

USD/JPY fell 0.3% to 107.36. Government data showed that Japan's household spending declined 16.2% on year in May (-11.8% expected).

More from Commodities

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.