Asia Morning Oct 19

On Friday, U.S. stocks closed mixed. The Dow Jones Industrial Average rebounded 112 points (-0.39%) to 28606, the S&P 500 was flat at 3483, while the Nasdaq 100 sank a further 46 points (-0.39%) to 11852.


Dow Jones Industrial Average (Daily Chart) : Still Bullish

Sources: GAIN Capital, TradingView


U.S. official data showed that Retail Sales jumped 1.9% on month in September (vs. +0.8% expected, +0.6% in August). However, White House Economic advisor Larry Kudlow pointed out that it is almost impossible to execute a fiscal stimulus package before the November election.

Automobiles & Components (+1.21%), Capital Goods (+1.09%) and Utilities (+1.08%) sectors gained the most, while Energy (-2.3%), Retailing (-1.24%) and Technology Hardware & Equipment (-1.09%) sectors were under pressure.

Drug-maker Pfizer (PFE +3.83%) announced plans to apply for U.S. Emergency Authorization Use of its experimental COVID-19 vaccine by the late November the soonest.

Airplane-producer Boeing (BA +1.89%) has been approved to resume flying its 737 Max aircraft in European skies.

The University of Michigan's Consumer Sentiment Index (preliminary reading) increased to 81.2 in October (80.5 expected). Meanwhile, Industrial Production unexpectedly fell 0.6% on month in September (+0.5% expected).

European stocks returned to positive territory. The Stoxx Europe 600 Index rebounded 1.26%, Germany's DAX 30 rose 1.62%, France's CAC 40 jumped 2.03%, and the U.K.'s FTSE 100 was up 1.49%.

U.S. Treasury prices were little changed, as the benchmark 10-year Treasury yield ticked up to 0.740% from 0.734% Thursday.

Spot gold declined $9 (-0.49%) to $1,899 an ounce.

U.S. WTI crude futures (November) fell $0.21 (-0.51%) to $40.75 a barrel. Latest data from Oilfield services firm Baker Hughes showed that the number of active oil rigs in the U.S. climbed by 12 to 205, posting a four-week increase.

On the forex front, the U.S. dollar softened modestly against other major currencies. The ICE Dollar Index declined 0.19% to 93.68.

EUR/USD added 0.07% to 1.1716. Eurozone official data showed that Consumer Prices (final reading) dropped 0.3% on year in September (as expected).

GBP/USD edged up 4 pips to 1.2915. The pound hovered around gains and losses after U.K. Prime Minister Boris Johnson pointed out that his country was heading toward a No-Deal Brexit.

USD/JPY eased to 105.40 from 105.44.

USD/CAD slipped 0.21% to 1.3190 halting a three-day rally.

Meanwhile, AUD/USD sank a further 0.20% to 0.7079.