Wed, Dec 02, 2020 @ 00:16 GMT
Home Contributors Fundamental Analysis Asia Morning: Dow, S&P End 7-Day Rally

Asia Morning: Dow, S&P End 7-Day Rally

On Tuesday, U.S. stocks ended in negative territory. The Dow Jones Industrial Average slid 104 points (-0.38%) to 27686 and the S&P 500 dropped 26 points (-0.80%) to 3333. Both indexes halted a seven-session rally. The Nasdaq 100 fell 209 points (-1.89%) to 10876 posting a three-day decline.

S&P 500 Index: Daily Chart

Investors were concerned after Senate Republican leader Mitch McConnell said there was no progress on talks for a COVID-19 relief package.

Technology Hardware & Equipment (-2.45%), Utilities (-2.13%) and Real Estate (-1.87%) sectors led the market lower. Newmont Mining (NEM -7.39%), Occidental Petroleum (OXY -8.01%) and Advanced Micro Devices (AMD -6.52%) lost the most.

Meanwhile, Wynn Resorts (WYNN +8.36%), Las Vegas Sands (LVS +7.32%), TripAdvisor (TRIP +4.53%) and Expedia (EXPE +3.78%) posted gains.

Regarding U.S. economic data, Producer Prices increased 0.6% on month in July (+0.3% expected, -0.2% in June).

European stocks were broadly higher. The Stoxx Europe 600 Index jumped 1.68%, Germany’s DAX 30 surged 2.04%, France’s CAC 40 climbed 2.41% and the U.K.’s FTSE 100 was up 1.71%.

U.S. government bond prices remained under pressure, as the benchmark 10-year Treasury yield jumped to 0.657% from 0.571% Monday.

Precious metals were sold hard as investors turned optimistic that a coronavirus vaccine would come soon. Spot gold price nose-dived $115.00 or 5.70% to $1,911 an ounce, the biggest daily dollar slide in over seven years. Spot silver price plummeted 14.84% to $24.80 an ounce.

U.S. WTI crude oil futures (September) declined 0.8% to $41.61 a barrel.

On the forex front, the ICE U.S. Dollar Index marked a day-low of 93.18 before bouncing back to 93.64, broadly unchanged from the prior session.

EUR/USD was little changed at 1.1737. The German ZEW Current Situation Index fell to -81.3 in August (-69.5 expected) from -80.9 in July while Expectations Index climbed to 71.5 (55.8 expected) from 59.3. The eurozone’s industrial production for June will reported later in the day (+10.0% on month expected).

GBP/USD slipped 0.2% to 1.3051. Official data showed that U.K. jobless rate was steady at 3.9% in the April-June period (4.2% expected). Later today, second quarter GDP (-22.3% on year expected) and June industrial production (+9.0% on month expected) will be released.

USD/JPY advanced 0.5% to 106.53.

USD/CAD lost 0.3% to 1.3308. Government data showed that Canada’s housing starts rose to an annualized rate of 245,600 units in July (205,000 units expected) from 212,100 units in June.

Meanwhile, NZD/USD was down 0.4% to 0.6564. The Reserve Bank of New Zealand is expected to keep its benchmark rate at 0.25% unchanged later today.

Forex.com
DISCLAIMER: 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 of sale of any currency. 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. 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.

Featured Analysis

Learn Forex Trading