Asia Morning: U.S. Stocks, Gold Seem Unstoppable

Tech stocks help to push the Nasdaq 100 Index to a fresh record close...

Trading floor 2

On Thursday, U.S. stocks charged higher, as tech stocks help to push the Nasdaq 100 Index (+141 points or 1.24%) to a fresh record close of 11267. The Dow Jones Industrial Average gained 185 points (+0.68%) to 27387, and the S&P 500 rose 21 points (+0.64%) to 3349.


Nasdaq 100 Index: Daily Chart


Source: GAIN Capital, TradingView


Media (+2.89%), Technology Hardware & Equipment (+2.74%) and Consumer Services (+1.75%) sectors gained the most. MGM Resorts (MGM +10.41%), Sealed Air (SEE +8.76%), Wynn Resorts (WYNN +7.42%) and Facebook (FB +6.49%) were among the top gainers. Apple (AAPL +3.49%) closed at an all-time high of $455.61 becoming the first company to have a market capitalization of 2 trillion dollars.

Regarding U.S. economic data, Initial Jobless Claims fell to 1.19 million last week (1.40 million expected), the lowest level since March.

Due later today is the U.S. official July Jobs Report (an addition of 1.48 million non-farm payrolls, a drop in jobless rate to 10.6% expected).

European stocks returned to the downside. The Stoxx Europe 600 Index dropped 0.73%, Germany's DAX 30 lost 0.54%, France's CAC 40 sank 0.98%, and the U.K.'s FTSE 100 shed 1.27%.

The benchmark U.S. 10-year Treasury yield declined to 0.535% from 0.549% Wednesday.

Spot gold price extended its power rally to a fifth session climbing $28.00 (+1.38%) to $2,066 an ounce. Meanwhile, spot silver price surged 7.3% to $28.91 an ounce.

U.S. WTI crude oil futures (September) fell 0.6% to $41.95 a barrel.

On the forex front, the U.S. dollar was little changed at close with the ICE U.S. Dollar Index staying at 92.77.

EUR/USD was up for a third session edging higher to 1.1876. German's Factory Orders jumped 27.9% on month in June, much better than +10.1% expected. 

GBP/USD gained 0.2% to 1.3142. As expected, the Bank of England kept unchanged its key interest rate at 0.100% and its asset purchase program at 745 billion pounds.

USD/JPY was little changed at 105.55.

AUD/USD advanced 0.6% to 0.7235 extending its rally to a third day. China's government will report July Trade Balance ($42.60 billion surplus, Exports -0.6% on year expected).

USD/CAD regained the key level of 1.3300 halting a four-day decline.


More from Commodities

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.