Asia Morning: U.S. Stocks Surge Despite Election Standstill
Ming Lam November 5, 2020 1:12 AM
The Nasdaq 100 Index soars 497 points or 4.41%...
On Wednesday, U.S. stocks extended their strong gains to a third session. The Dow Jones Industrial Average rose 367 points (+1.34%) to 27847, the S&P 500 increased 74 points (+2.20%) to 3443, and the Nasdaq 100 soared 497 points (+4.41%) to 11777.
S&P 500 Index (Daily Chart) : Bullish Gap
Sources: GAIN Capital, TradingView
The presidential race between Donald Trump and Joe Biden remains unsettled, while all eyes are now on vote counting in Michigan and Pennsylvania. Both sides are expected to take legal actions to challenge results in states, and it could take days or weeks to decide who the winner is.
Media (+5.2%), Pharmaceuticals, Biotechnology & Life Sciences (+5.08%) and Software & Services (+4.16%) sectors performed the best. Biogen (BIIB +43.97%) became the top gainer after the U.S. Food and Drug Administration (FDA) posted a positive report on the company's Alzheimer's drug aducanumab.
Approximately 71% (67% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 51% (33% in the prior session) were trading above their 20-day moving average.
Regarding U.S. economic data, the Automatic Data Processing's employment report showed that the economy added 365,000 private jobs in October (+643,000 expected). The Institute for Supply Management (ISM) Services Index posted at 56.6 for October (57.5 expected).
European stocks stayed strong. The Stoxx Europe 600 rose 2.05%, Germany's DAX climbed 1.95%, France's CAC 40 jumped 2.44% and the U.K.'s FTSE 100 was up 1.67%.
U.S. Treasury prices rebounded, as the benchmark 10-year Treasury yield retreated to 0.768% from 0.884% Tuesday.
Spot gold fell $5 (-0.27%) to $1,904 an ounce.
U.S. WTI crude futures (December) advanced a further $1.36 (+3.61%) to $39.02 a barrel.
The forex market saw a choppy session as the election was too close to call. The ICE Dollar Index swung up to 94.30 before coming down to close at 93.44, down 0.11% on day.
EUR/USD sank to 1.1603 before rebounding to close at 1.1723, compared with 1.1715 in the prior session.
USD/JPY failed to stay above 105.00 and closed at 104.52.
GBP/USD lost the 1.3000 level again as it slipped 0.53% to 1.2989.
AUD/USD managed to added 0.22% to 0.7180.
USD/CNH (offshore yuan) ended 0.86% to 6.6233 posting a 5-day losing streak.
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.