On Wednesday, U.S. stocks resumed their rebound. The Dow Jones Industrial Average jumped 329 points (+1.20%) to 27781, the S&P 500 rose 27 points (+0.83%) to 3363, and the Nasdaq 100 was up 95 points (+0.84%) to 11418.

Dow Jones Industrial Average : Daily Chart

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The first presidential debate between Donald Trump and Joe Biden, widely regarded as chaotic, seemed not to have much impact on the market. Instead, investors were still optimistic over a new economic stimulus package, although U.S. Treasury Secretary Steven Mnuchin said there is still no agreement on a deal after a meeting with House Speaker Nancy Pelosi.

Health Care Equipment & Services (+2.23%), Automobiles & Components (+1.47%) and Food & Staples Retailing (+1.43%) sectors performed the best. Duke Energy (DUK +7.46%), L Brands (LB +4.78%), Centene Corp (CNC +4.42%), Universal Health Services (UHS +4.38%) and Harley-Davidson Inc (HOG +3.94%) were top gainers.

Approximately 59% (61% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 37% (42% in the prior session) were trading above their 20-day moving average.

U.S. official data showed that the GDP (third reading) shrank at an annualized rate of 31.4% on quarter in the second quarter (-31.7% expected). Pending Home Sales surged 8.8% on month in August (+3.1% expected). And the Automatic Data Processing (ADP) jobs report showed that the economy added 749,000 private jobs in September (+649,000 expected).

European stocks remained under pressure. The Stoxx Europe 600 Index edged down 0.11%, Germany’s DAX 30 declined 0.51%, France’s CAC 40 lost 0.59%, and the U.K.’s FTSE 100 was down 0.53%.

U.S. Treasury prices softened and the benchmark 10-year Treasury yield advanced to 0.677%.

Spot gold slipped back $12.00 to $1,885 an ounce, while spot silver shed 3.9% to $23.24 an ounce.

Oil prices rose after the U.S. Energy Information Administration reported that crude-oil stockpiles were down 2 million barrels last week, in contrast to an addition of 1.6 million barrels expected. U.S. WTI crude oil futures (November) rebounded 2.4% to $40.22 a barrel.

On the forex front, the U.S. dollar softened further as investors were optimistic on a new stimulus package. The ICE Dollar Index edged down to 93.80 from 93.87 in the prior session.

EUR/USD declined 0.19% to 1.1720. Official data in Germany showed that the jobless rate held steady at 6.3% in September (6.4% expected) and retail sales jumped 3.1% on month in August (+0.4% expected). In France, consumer prices were reported to edged up 0.1% on year in September ((+0.2% expected).

GBP/USD rallied for a third session advancing 0.44% to 1.2920. U.K. official data showed that the second-quarter GDP (final readings) shrank 19.8% on quarter (-20.4% expected). The Nationwide Building Society House Price Index rose 0.9% on month in September (+0.5% expected).

Meanwhile, USD/JPY fell 0.19% to 105.46, and USD/CAD slid 0.52% to 1.3318.

AUD/USD climbed 0.45% to 0.7162.

 

 

 

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