Asia Morning: U.S. Stocks Lack Upward Momentum

,

The U.S. Federal Reserve said it would keep interest rates near zero at least through 2023...

Trading floor 2

On Wednesday, U.S. stocks scrapped earlier gains to close mixed. The Dow Jones Industrial Average was 36 points higher (+0.13%) to 28032, while the S&P 500 declined 15 points (-0.46%) to 3385 and the Nasdaq 100 sank 191 points (-1.67%) to 11247.


Nasdaq 100 Index: Daily Chart


Sources: GAIN Capital, TradingView


As expected, the Federal Reserve decided to keep the its key interest rate unchanged at 0.00%-0.25%. The central bank said it would keep interest rates near zero at least through 2023.

Energy (+4.04%), Banks (+1.43%) and Capital Goods (+1.43%) sectors performed the best, while Technology Hardware & Equipment (-2.33%), Retailing (-1.67%) and Media (-1.4%) sectors lagged behind. Energy companies such as Occidental Petroleum (OXY +8.68% to $11.64), Diamondback Energy (FANG +7.9% to $32.91) and Marathon Oil (MRO +5.07% to $4.56) rallied as oil prices surged 5.0%.
  
General Electric (GE +10.66%) was the top gainer, while Illumina Inc (ILMN -8.44%) and NVIDIA Corp (NVDA -3.67%) were among the top losers.   

Approximately 64.2% (same as in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 53.7% (52.5% in the prior session) were trading above their 20-day moving average.

U.S. official data showed that Retail Sales rose 0.6% on month in August (+1.0% expected).

European stocks were broadly higher. The Stoxx Europe 600 Index advanced 0.58%, Germany's DAX 30 gained 0.29%, France's CAC 40 edged up 0.13%, while the U.K.'s FTSE 100 retreated 0.44%.

The benchmark U.S. 10-year Treasury yield increased one basis point to 0.688%.

U.S. WTI crude oil futures (October) jumped 4.9% to $40.16 a barrel. Oil prices rose after the U.S. Energy Information Administration reported an unexpected reduction of 4.4 million barrels in crude-oil stockpiles (+1.3 million barrels expected).

Spot gold rose $5.00 (+0.25%) to $1,959 an ounce.

On the forex front, the ICE U.S. Dollar Index was broadly stable at 93.10, as the Fed signal that it would keep interest rates at current level through 2023.

EUR/USD dropped 0.3% to 1.1810.

GBP/USD rose 0.6% to 1.2961, posting a three-day rebound. Official data showed that U.K. CPI grew 0.2% on year in August (flat expected). Later today, The Bank of England is expected to keep its monetary policy unchanged (benchmark rate at 0.10% expected).

USD/JPY slid 0.4% to 105.01, down for a third straight session. The Bank of Japan is widely expected to hold its benchmark rate at -0.10% later in the day.

USD/CAD was little changed at 1.3176. Government data showed that Canada's CPI grew 0.1% on year in August (+0.4% expected).

Meanwhile, NZD/USD gained 0.2% to 0.6732, extending its rally to a fourth straight session. New Zealand's economy shrank 12.4% on year in the second quarter (-12.8% expected), according to the government.


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.