Asia Morning July 14

On Monday, U.S. stocks closed mixed after turning sharply lower in the final trading hour. The Nasdaq 100 Index shed 234 points (-2.16%) to 10602, the S&P 500 fell 29 points (-0.94%) to 3155, while the Dow Jones Industrial Average edged up 10 points to 26085.


Nasdaq 100 Index: Daily Chart


Source: GAIN Capital, TradingView


Investors were discouraged by California's action to roll back its reopening plans due to an uptick in coronavirus cases.

Software & Services (-2.87%), Semiconductors & Semiconductor Equipment (-2.29%) and Media (-2.19%) sectors were the worst performers. Fortinet (FTNT -10.07%), Analog Devices (ADI -5.82%), Carnival Corp (CCL -5.45%), Salesforce.com (CRM -5.30%) and Adobe Systems (ADBE -5.09%) were the top losers. On the other hand, Wynn Resorts (WYNN +9.62%) and Las Vegas Sands (LVS +6.15%) jumped. 

On the technical side, about 42.0% (39.5% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 50.1% (39.2% in the prior session) were trading above their 20-day moving average.

The U.S. government posted a record Federal Budget Deficit of 864.1 billion dollars for June (863.0 billion dollars deficit expected).

European stocks were broadly higher. The Stoxx Europe 600 Index jumped 1.00%. Germany's DAX 30 increased 1.32%, France's CAC 40 gained 1.73%, and the U.K.'s FTSE 100 was up 1.33%.

The benchmark 10-year Treasury yield climbed to 0.643% from 0.633% Friday.

Spot gold price rebounded $4.00 (+0.2%) to $1,802 an ounce halting a two-session decline.

Oil prices declined after reports that major oil-producing countries may ease output curbs in view of improving demand. U.S. WTI crude oil futures (August) fell 1.1% to $40.10 a barrel.

On the forex front, the ICE U.S. Dollar Index slipped 0.1% on day at 96.53.

EUR/USD rose 0.4% to 1.1347. Later today, the eurozone's industrial production for May (+15.0% on month expected) and the German ZEW Current Situation Index (-65.0 expected) will be reported.

GBP/USD slid 0.6% to 1.2557. Bank of England Governor Andrew Bailey said the U.K. economy is recovering but he is very worried about the jobs market. Meanwhile, investors will focus on U.K. GDP growth for May (+5.0% on month expected) and industrial production (+6.0% on month expected), both due later in the day.

USD/JPY climbed 0.4% to 107.29, snapping a three-day decline.