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

Wall Street sign with a building in background
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.

Related tags: Commodities Forex Equities

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