Asia Morning: Dow Closes Above 30,000
Ming Lam November 26, 2020 12:53 AM
The S&P 500 also closes at all-time high...
On Tuesday, U.S. stocks rallied further pushing the Dow Jones Industrial Average (+455 points or 1.54% to 30046) to close above the key 30,000 level for the first time. The S&P 500 increased 57 points (+1.62%) to 3635, also an all-time high. The Nasdaq 100 rose 173 points (+1.46%) to 12079.
Dow Jones Industrial Average Index (Daily Chart) : Further Adance Above 30,000 Level
Sources: GAIN Capital, TradingView
Investors were encouraged by news reports that formal transition for Joe Biden's potential administration has begun, and that Biden would appoint former Federal Reserve Chair Janet Yellen as his would-be Treasury Secretary.
Banks (+5.52%), Energy (+5.16%) and Automobiles & Components (+4.66%) sectors were the best performers. Energy companies such as Apache (APA +9.06%), Hess (HES +7.14%), Exxon Mobil (XOM +6.66%) and Chevron (CVX +5.04%) surged for a second day as oil prices jumped over 4%.
Dollar Tree (DLTR +13.63%), Mosaic (MOS +12.49%) and JP Morgan Chase (JPM +4.62%) also saw significant gains in share prices.
Approximately 90% (89% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 80% (79% in the prior session) were trading above their 20-day moving average.
According to the S&P CoreLogic Case-Shiller index report, U.S. home prices rose 6.6% on year in September, the biggest increase since April 2018.
European stocks also gained. The Stoxx Europe 600 rose 0.91%, Germany's DAX advanced 1.26%, France's CAC 40 increased 1.21%, and the U.K.'s FTSE 100 was up 1.55%.
U.S. Treasury prices slid as investors' risk appetite expanded further. The benchmark U.S. 10-year Treasury yield climbed to 0.882% from 0.854% Monday.
Spot gold shed $31 (-1.69%) to $1,806 an ounce.
U.S. WTI crude futures (January) jumped $1.82 (+4.23%) to $44.88 a barrel.
The U.S. dollar resumed weakness against other major currencies as investors felt comfortable to bid for riskier assets. The ICE Dollar Index sank 0.39% to 92.14.
Commodity-related currencies benefited from oil prices' surge. NZD/USD hit 0.7000 for the first time since June 2018, as it was widely expected that New Zealand may not see further interest-rate cuts.
AUD/USD gained 1.02% to 0.7360, while USD/CAD slipped from the key 1.3000 level.
EUR/USD rose 0.43% to 1.1892 ending a two-day decline.
GBP/USD climbed 0.34% to 1.3359 posting a three-day rally.
USD/JPY eased to 104.44 from 104.53 in the prior session, and USD/CHF declined 0.16% to 0.9112.
StoneX Financial Ltd (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.