Asia Morning: U.S. Stocks Rebound, But Unrest, Virus Concerns Remain

,

On Friday, U.S. stocks rebounded paring some losses caused in the sell-off on Thursday....

Trading floor 2

On Friday, U.S. stocks rebounded paring some losses caused in the sell-off on Thursday. The Dow Jones Industrial Average rose 477 points (+1.9%) to 25605, the S&P 500 gained 39 points (+1.3%) to 3041, and the Nasdaq 100 was up 75 points (+0.8%) to 9663.

Dow Jones Industrial Average: Daily Chart


Source: GAIN Capital, TradingView


Automobiles & Components (+4.87%), Banks (+3.96%) and Real Estate (+3.16%) sectors performed the best. 

United Airlines (UAL +19.03%), Norwegian Cruise Line (NCLH +18.84%), American Airlines (AAL +16.41%), Carnival Corporation (CCL +14.56%) and Royal Caribbean Cruises Ltd (RCL +12.24%) were top gainers.

On the technical side, about 36.3% (51.7% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average.

Regarding U.S. economic data, the University of Michigan's Consumer Sentiment Index (preliminary reading) rose to 78.9 in June (75.0 expected).

Due later today is the Empire Manufacturing Index for June (a rise to -30.0 expected).

Meanwhile, another deadly police shooting occurred in Atlanta city of U.S. state of Georgia on Friday night leading to the death of a black citizen. In China, capital city Beijing was forced to lock down residential buildings and a large market amid newly-confirmed coronavirus cases.

European stocks closed mixed, with the Stoxx Europe 600 Index climbing 0.3%. Both France's CAC and the U.K.'s FTSE 100 rebounded 0.5%, while Germany's DAX declined 0.2%. 

U.S. government bond prices eased, as the benchmark 10-year Treasury yield advanced to 0.698% from 0.651% Thursday.

Spot gold added $2.00 (+0.1%) to $1,729 an ounce.

Oil prices, however, failed to show upward momentum. U.S. WTI crude oil futures (July) declined 0.2% to $36.26 a barrel.

On the forex front, the ICE U.S. Dollar Index rebounded for a second straight session, rising 0.6% on day to 97.32.

EUR/USD dropped 0.4% to 1.1256. Official data showed that the eurozone's industrial production declined 17.1% on month in April (-18.5% expected).

GBP/USD lost 0.5% to 1.2542. Government data showed that U.K. GDP declined 20.4% on month in April (-18.7% expected). Also, industrial production dropped 20.3% (-15.0% expected) and manufacturing production slid 24.3% (-15.6% expected). Bank of England Governor Andrew Bailey said the economic contraction is broadly in line with BOE's forecasts and the central bank is ready to take further action.

USD/JPY bounced 0.5% to 107.36, snapping a four-day decline. The Bank of Japan will begin its two-day monetary policy meeting today.

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.