Nasdaq at Record High, EUR/USD Surges Above 1.2000

On Tuesday, the three major U.S. indices closed higher, with Nasdaq 100 rising 187 points (+1.5%) to a fresh record high of 12455.

Trading floor 3

On Tuesday, the three major U.S. indices closed higher, with Nasdaq 100 rising 187 points (+1.5%) to a fresh record high of 12455. The Dow Jones Industrial Average gained 185 points (+0.6%) to 29823 and the S&P 500 added 40 points (+1.1%) to 3662. Technology Hardware & Equipment (+2.7%), Insurance (+2.3%) and Media (+2.3%) sectors led the rally.


Nasdaq 100 Index Daily Chart:


Source: GAIN Capital, TradingView


Approximately 91% of stocks in the S&P 500 Index were trading above their 200-day moving average and 78% were trading above their 20-day moving average. The VIX Index rose 0.2 point (+1.0%) to 20.77.

It is reported that Pfizer (PFE +2.9%) and BioNTech sought regulatory approval for their Covid-19 vaccine in the European Union, which could be approved before year-end.

Regarding U.S. economic data, the ISM Manufacturing Index fell to 57.5 in November (58.0 expected) from 59.3 in October, while construction spending grew 1.3% in October (+0.8% expected). Later today, investors will focus on the November ADP jobs report (+0.43 million jobs expected). The Federal Reserve will release its economic report, the Beige Book.

European stocks were broadly higher. The Stoxx Europe 50 climbed 0.9%, Germany's DAX advanced 0.7%, France's CAC 40 rose 1.1%, and the U.K.'s FTSE 100 jumped 1.9%.

The benchmark U.S. 10-year Treasury yield surged to a 3-week high of 0.9260% from 0.8389% Monday.

WTI crude futures slid 1.7% to $44.55 a barrel. The American Petroleum Institute (API) reported that U.S. crude-oil inventories increased 4.15 million barrels in the week ending November 27 (-2.36 million barrels expected).

Spot gold rallied 2.2% to $1,815 an ounce.

On the forex front, the ICE U.S. Dollar Index dropped 0.7% to 91.19, the lowest level since April 2018.

EUR/USD surged 1.2% to 1.2072, the highest level since May 2018. Official data showed that the eurozone's CPI slipped 0.3% on year in November (-0.2% expected), while German jobless rate fell to 6.1% in November (6.3% expected) from 6.2% in October. Later today, German retail sales for October will be released (+1.2% on month expected).

GBP/USD advanced 0.8% to 1.3427. European Commission President Ursula von der Leyen said it is very clear that they want an agreement with the U.K., despite difficult negotiations.

USD/JPY was little changed at 104.29.

USD/CAD slid 0.5% to 1.2933. Government data showed that Canada's third quarter annualized GDP bounced 40.5% on quarter (+47.9% expected).

AUD/USD climbed 0.5% to 0.7380. The Reserve Bank of Australia kept its benchmark rate unchanged at 0.10% as expected.

More from Indices

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.