Asia Morning: US Stocks, Oil Higher as Sentiment Keeps Improving

Investors were encouraged to see that, as countries relaxed coronavirus-induced restrictions, oil prices rallied on expectations of rebounding demand...

Trading floor 2

On Monday U.S. stocks stabilized after two losing sessions. Investors were encouraged to see that, as countries relaxed coronavirus-induced restrictions, oil prices rallied on expectations of rebounding demand. 

The Dow Jones Industrial Average edged up 26 points (+0.1%) to 23,749, the S&P 500 added 12 points (+0.4%) to 2,842, and the Nasdaq 100 rebounded 115 points (+1.3%) to 8,834.

Source: GAIN Capital, TradingView

Energy (+3.71%), Software & Services (+1.64%), Semiconductors & Semiconductor Equipment (+1.22%) sectors gained the most.

Phillips 66 (PSX +10.7%), Valero Energy (VLO +8.3%) and Marathon Petroleum (MPC +7.8%) were top gainers.

Tyson Foods (TSN -7.8%) and Whirlpool (WHR -5.5%) showed heavy losses. 

American Airlines (AAL -7.7%), Delta Air Lines (DAL -6.4%), United Airlines (UAL -5.1%) and Southwest Airlines (LUV -5.7%) all crashed to the bottom of the S&P after Berkshire Hathaway (BRKA -2.5%) said on Saturday that it had sold all stakes in the four major U.S. airlines.

On the technical side, about 21.6% (25.8% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 62.4% (83.2% in the prior session) were above their 20-day moving average.

U.S. official data showed that Factory Orders dropped 10.3% on month in March (-9.2% on month expected) and Durable Goods Orders (final reading) fell 14.7% (-14.4% expected).

Later today, March U.S. Trade Balance (deficit of 44.2 billion dollars expected), April Markit U.S. Services Purchasing Mangers' Index (final reading, 27.0 expected) and Institute for Supply Management's (ISM) Non-Manufacturing Index (37.8 expected) will be reported.

European stocks got heavier, with the Stoxx Europe 600 Index slumping 2.7%. Germany's DAX tumbled 3.6%, France's CAC plunged 4.2%, and the U.K.'s FTSE 100 edged down 0.2%.

The benchmark 10-year U.S. Treasury yield settled slightly lower at 0.636%.

Spot gold gained 2 dollars to $1,700 an ounce.

U.S. WTI crude oil futures (June) advanced 3.1% to $20.39 a barrel, and Brent crude oil futures rose 2.9% to $27.20 a barrel.

On the forex front, the U.S. dollar stabilized against its major peers on Monday, with the ICE Dollar Index rebounding 0.4% on day to 99.51.

Build your confidence risk free

More from Indices

Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.