Asia Morning: U.S. Market Sentiment Boosted by Vaccine Deal

,

Meanwhile, investors seemed to look past escalating tensions between the U.S. and China...

Trading floor 2

On Wednesday, U.S. stocks closed higher. The Dow Jones Industrial Average climbed 165 points (+0.62%) to 27005, the S&P 500 rose 18 points (+0.57%) to 3276, and the Nasdaq 100 was up 37 points (+0.35%) to 10870.


S&P 500 Index: Daily Chart


Source: GAIN Capital, TradingView


Investors were encouraged to see that the U.S. government signed a deal worth $1.95 billion with Pfizer (PFE +5.10%) and BioNTech (BNTX +13.72%) for 100 million doses of their experimental COVID-19 vaccine.

Meanwhile, investors seemed to look past escalating tensions between the U.S. and China. The U.S. government demanded that China shut down its consulate in Houston, Texas, within 72 hours amid accusations of spying. Retaliatory measures from Beijing are widely expected.

Consumer Durables & Apparel (+1.76%), Consumer Services (+1.64%) and Utilities (+1.53%) sectors were the best performers. HCA Healthcare (HCA +11.97%), Advanced Micro Devices (AMD +8.40%) and Best Buy (BBY +7.84%) were the top gainers.

On the technical side, about 53.4% (51.8% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 87.5% (77.0% in the prior session) were trading above their 20-day moving average.

In after-marker hours, Tesla (TSLA +1.53%) posted a fourth consecutive quarterly profit saying it earned $0.50 per share in the second quarter, against expectations of a loss of $1.06 per share. Microsoft (MSFT +1.44%) reported a fourth-quarter earnings per share of $1.46 ($1.36 expected).

European stocks closed in negative territory. The Stoxx Europe 600 Index fell 0.87%. Germany's DAX 30 dropped 0.51%, France's CAC 40 lost 1.32%, and the U.K.'s FTSE 100 was down 1.00%.

The benchmark U.S. 10-year Treasury yield slid further to 0.595% from 0.606% Tuesday.

Spot gold price surged a further $29.00 (+1.6%) to $1,871 an ounce, and spot silver soared 8.0% to $23.00 an ounce.

U.S. WTI crude oil futures (August) were little changed at $41.90 a barrel. The U.S. Energy Information Administration reported that crude-oil stockpiles increased 4.90 million barrels last week, contrary to a reduction of 1.95 million barrels expected.

On the forex front, the ICE U.S. Dollar Index slipped 0.2% on day to 94.95, down for a fourth straight session. 

EUR/USD advanced 0.4% to 1.1569, the highest level since October 2018. Later today, the eurozone's Consumer Confidence Index for July will be released (-12.0 expected).

GBP/USD was broadly flat at 1.2734, after a three-day rally.

USD/JPY rebounded 0.4% to 107.19.

Meanwhile, AUD/USD gained 0.2% to 0.7142, posting a four-day winning streak. 


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.