Asia Morning: U.S. Stocks Still at Elevated Levels

Wall Street sign with a building in background
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.

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