Asia Morning: U.S. Stocks Ease, Airline Shares Shed Over 5%

,

On Tuesday, U.S. stocks reversed course to the downside after a surge in the prior session...

Trading floor 2

On Tuesday, U.S. stocks reversed course to the downside after a surge in the prior session. The Dow Jones Industrial Average fell 396 points (-1.51%) to 25890, the S&P 500 dropped 34 points (-1.08%) to 3145, and the Nasdaq 100 was down 80 points (-0.75%) to 10524.


Nasdaq 100 Index: Daily Chart

Source: GAIN Capital, TradingView


Energy (-3.18%), Banks (-3.16%) and Capital Goods (-2.24%) sectors lost the most. Devon Energy (DVN -7.26%), Phillips 66 (PSX -5.21%), United Airlines (UAL -7.47%), American Airlines (AAL -6.68%), Delta Airlines (DAL -5.19%) and Boeing Co (BA -4.81%) were top losers. 

On the technical side, about 45.9% (43.3% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 56.7% (39.3% in the prior session) were trading above their 20-day moving average.

European stocks were broadly lower. The Stoxx Europe 600 Index declined 0.61%. Germany's DAX 30 fell 0.92%, France's CAC 40 lost 0.74%, and the U.K.'s FTSE 100 was down 1.53%.

U.S. government bond prices rebounded, as the benchmark 10-year Treasury yield eased to 0.652% from 0.683% Monday.

Spot gold price extended its winning streak to a fourth session gaining $10.00 (+0.6%) to $1,795 an ounce, the highest close since September 2011.

U.S. WTI crude oil futures (August) were little changed at $40.62 a barrel.

On the forex front, the ICE U.S. Dollar Index rose 0.2% on day to 96.97. Federal Reserve Bank of Atlanta President Raphael Bostic said the coronavirus impacts might go on longer than they had expected and planned for.

EUR/USD lost 0.3% to 1.1276. Official data showed that German industrial production grew 7.8% on month in May (+11.1% expected).

GBP/USD climbed 0.4% to 1.2543. U.K. chief negotiator David Frost met his European Union counterpart Michel Barnier on Tuesday evening, and investors were hopeful ahead of the trade talks scheduled later today.

USD/JPY gained 0.2% to 107.60. 

AUD/USD dropped 0.4% to 0.6944. The Reserve Bank of Australia kept its benchmark rate unchanged at 0.25% as expected.

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.