Asia Morning: Tech Stocks Lead U.S. Market Rebound
Ming Lam July 28, 2020 2:24 AM
Investors were cheered up by a new $1 trillion stimulus bill proposed by Republican Senators...
On Monday, U.S. stocks rebounded. The Dow Jones Industrial Average rose 114 points (+0.43%) to 26584, the S&P 500 added 23 points (+0.74%) to 3239, and the Nasdaq 100 jumped 191 points (+1.82%) to 10674.
Nasdaq 100 Index: Daily Chart
Source: GAIN Capital, TradingView
Investors were cheered up by a new $1 trillion stimulus bill proposed by Republican Senators.
Technology Hardware & Equipment (+2.26%), Semiconductors & Semiconductor Equipment (+1.79%) and Materials (+1.41%) sectors performed the best. Tech giants like Apple (AAPL +2.37%), Amazon (AMZN +1.54%) and Alphabet (GOOG +1.21%) closed higher.
On the technical side, about 55.4% (56.4% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 76.2% (83.2% in the prior session) were trading above their 20-day moving average.
The U.S. Commerce Department reported that Durable Goods Orders (preliminary readings) increased 7.3% on month in June (+6.9% expected).
Due later today is the Conference Board's Consumer Confidence Index (a fall to 94.7 in July expected).
European stocks were broadly lower. The Stoxx Europe 600 Index declined 0.31%, France's CAC 40 fell 0.34% and the U.K.'s FTSE 100 was down 0.31%. Germany's DAX ended flat.
The benchmark U.S. 10-year Treasury yield climbed further to 0.609% from 0.589% Friday.
Spot gold price showed no signs of fatigue as it surged $36.00 (+1.9%) to $1,942 an ounce, a record close. Spot silver price soared 8.1% to $24.58 an ounce, the highest level since August 2013.
U.S. WTI crude oil futures (August) advanced a further 0.8% to $41.60 a barrel.
On the forex front, the U.S. dollar kept showing weakness as traders expected the Federal Reserve, which is to hold its regular meeting this week, to maintain its easing policies. The ICE U.S. Dollar Index sank a further 0.7% to 93.65, the lowest close since June 2018.
EUR/USD continued to show upward momentum jumping 0.8% to 1.1751, the highest level since September 2018. Germany's IFO Business Climate Index rose to 90.5 in July (89.3 expected) and Expectations Index was up to 97.0 (93.4 expected).
GBP/USD increased 0.7% to 1.2881, extending its winning streak to a seventh session.
USD/JPY accelerated to the downside after losing the key 106.00, sinking 0.7% to 105.37, the lowest level since March 12.
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.