Asia Morning: U.S. Stocks Rebound, But Unrest, Virus Concerns Remain

,

On Friday, U.S. stocks rebounded paring some losses caused in the sell-off on Thursday....

Trading floor 2

On Friday, U.S. stocks rebounded paring some losses caused in the sell-off on Thursday. The Dow Jones Industrial Average rose 477 points (+1.9%) to 25605, the S&P 500 gained 39 points (+1.3%) to 3041, and the Nasdaq 100 was up 75 points (+0.8%) to 9663.

Dow Jones Industrial Average: Daily Chart


Source: GAIN Capital, TradingView


Automobiles & Components (+4.87%), Banks (+3.96%) and Real Estate (+3.16%) sectors performed the best. 

United Airlines (UAL +19.03%), Norwegian Cruise Line (NCLH +18.84%), American Airlines (AAL +16.41%), Carnival Corporation (CCL +14.56%) and Royal Caribbean Cruises Ltd (RCL +12.24%) were top gainers.

On the technical side, about 36.3% (51.7% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average.

Regarding U.S. economic data, the University of Michigan's Consumer Sentiment Index (preliminary reading) rose to 78.9 in June (75.0 expected).

Due later today is the Empire Manufacturing Index for June (a rise to -30.0 expected).

Meanwhile, another deadly police shooting occurred in Atlanta city of U.S. state of Georgia on Friday night leading to the death of a black citizen. In China, capital city Beijing was forced to lock down residential buildings and a large market amid newly-confirmed coronavirus cases.

European stocks closed mixed, with the Stoxx Europe 600 Index climbing 0.3%. Both France's CAC and the U.K.'s FTSE 100 rebounded 0.5%, while Germany's DAX declined 0.2%. 

U.S. government bond prices eased, as the benchmark 10-year Treasury yield advanced to 0.698% from 0.651% Thursday.

Spot gold added $2.00 (+0.1%) to $1,729 an ounce.

Oil prices, however, failed to show upward momentum. U.S. WTI crude oil futures (July) declined 0.2% to $36.26 a barrel.

On the forex front, the ICE U.S. Dollar Index rebounded for a second straight session, rising 0.6% on day to 97.32.

EUR/USD dropped 0.4% to 1.1256. Official data showed that the eurozone's industrial production declined 17.1% on month in April (-18.5% expected).

GBP/USD lost 0.5% to 1.2542. Government data showed that U.K. GDP declined 20.4% on month in April (-18.7% expected). Also, industrial production dropped 20.3% (-15.0% expected) and manufacturing production slid 24.3% (-15.6% expected). Bank of England Governor Andrew Bailey said the economic contraction is broadly in line with BOE's forecasts and the central bank is ready to take further action.

USD/JPY bounced 0.5% to 107.36, snapping a four-day decline. The Bank of Japan will begin its two-day monetary policy meeting today.

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.