Asia Morning: U.S. Stocks Still at Elevated Levels
Ming Lam November 9, 2020 1:32 AM
Over the weekend, Joe Biden declared victory in the election...
On Friday, U.S. stocks stayed at elevated levels following a strong rebound from Monday through Thursday. The Dow Jones Industrial Average eased 66 points (-0.24%) to 28323 after gaining over 7% in the prior four sessions. The S&P 500 dipped 1 point to 3509, while the Nasdaq 100 charged 13 points (+0.11%) higher to 12091.
Dow Jones Industrial Average (Daily Chart) : Current Focus at 29100
Sources: GAIN Capital, TradingView
The U.S. Labor Department reported that the economy added 638,000 nonfarm payrolls in October (+580,000 expected, +672,000 in September) and the jobless rate dropped to 6.9% (7.6% expected).
Semiconductors & Semiconductor Equipment (+1.38%), Telecommunication Services (+0.88%) and Food & Staples Retailing (+0.79%) sectors performed the best, while Energy (-2.14%), Banks (-1.78%) and Consumer Durables & Apparel (-1.38%) sectors were laggards. Coty Inc (COTY +22.16%) and News Corp (NWSA +8.29%) became top gainers after reporting better-than-expected quarterly results.
Approximately 75% (72% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 68% (49% in the prior session) were trading above their 20-day moving average.
European stocks were broadly lower. The Stoxx Europe 600 slipped 0.20%, Germany's DAX dropped 0.70%, France's CAC 40 fell 0.46%, while the U.K.'s FTSE 100 was little changed.
U.S. Treasury prices skidded, as the benchmark 10-year Treasury yield climbed to 0.817% from 0.770% Thursday.
Spot gold climbed $3 (+0.15%) to $1,952 an ounce.
U.S. WTI crude futures (December) fell $1.38 (-3.56%) to $37.41 a barrel.
Over the weekend, Democratic presidential nominee Joe Biden declared victory in the election. However, President Donald Trump did not concede the election, saying: "Beginning Monday, our campaign will start prosecuting our case in court to ensure election laws are fully upheld and the rightful winner is seated."
The U.S. dollar remained weak against other major currencies, as traders kept selling the currency after Federal Reserve Chair Jerome Powell reiterated on Thursday the needs for more fiscal and monetary stimulus. The ICE Dollar Index declined 0.32% to 92.22.
EUR/USD climbed for a fourth session to 1.1872, the highest close since September 1. For the whole week, the pair gained about 2.1%, the most since March. Official data showed that Germany's industrial production increased 1.6% on month in September (+2.5% expected).
USD/CHF sank a further 0.49% to 0.8999, the lowest close since January 2015.
USD/JPY inched closer to the next key level of 103.00 on the downside, as it eased 0.12% to 103.32.
GBP/USD stepped up to 1.3159 from 1.3148 Thursday. On a daily chart, it keeps striking against the upper Bollinger band.
AUD/USD declined 0.34% to 0.7258 halting a four-day rebound.
USD/CAD was steady at 1.3050.
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.