On Friday, U.S. stocks remained firm despite worsening relationship between the U.S. and China. In response to China imposing a controversial national security law on Hong Kong, U.S. President Donald Trump announced that preferential trade treatment for Hong Kong would be ended.
Trump also said sanctions would be imposed on Chinese and Hong Kong officials involved in eroding the city's autonomy.
The Dow Jones Industrial Average eased 17 points to 25383, while the S&P 500 rose 14 points (+0.5%) to 3044 and the Nasdaq 100 jumped 138 points (+1.5%) to 9555.
Source: GAIN Capital, TradingView
Semiconductors & Related Equipment (+2.91%), Pharmaceuticals, Biotechnology & Life Sciences (+1.64%) and Retailing (+1.35%) sectors were the best performers. On the other hands, Banks (-2.61%), Automobiles & Components (-1.67%) and Insurance (-1.07%) sectors lagged behind.
On the technical side, about 43.4% (43.2% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 92.9% (89.5% in the prior session) were above their 20-day moving average.
U.S. official data showed that Personal Income jumped 10.5% on month in April (-6.0% expected) while Personal Spending fell 13.6% (-12.8% expected). Wholesale Inventories increased 0.4% on month in April (-0.7% expected).
Market News International's Chicago Purchasing Managers Index fell to 32.3 in May (40.0 expected) and the University of Michigan's Consumer Sentiment Index dropped to 72.3 (74.0 expected).
Later today, the Markit U.S. Manufacturing Purchasing Managers' Index (May final reading, 40.0 expected) and the Institute for Supply Management's Manufacturing Purchasing Mangers' Index (43.7 for May expected) will be reported.
Over the weekend, violent protests erupted in cities across the U.S. sparked by the death of George Floyd, an unarmed black man, in the hands of Minneapolis police in Minnesota state. In Monday morning, U.S. stock index futures were under pressure.
European stocks were broadly lower on Friday, with the Stoxx Europe 600 Index falling 1.4%. Germany's DAX lost 1.7%, the U.K.'s FTSE 100 sank 2.3% and France's CAC was down 1.6%.
U.S. Treasury prices rebounded, as the benchmark 10-year Treasury yield declined 5.3 basis points to 0.650%.
Spot gold price was up for a second session as it gain $11 (+0.7%) to $1,729 an ounce.
Oil prices advanced further, as U.S. WTI crude oil futures jumped 5.3% to $35.49 a barrel.
On the forex front, the ICE U.S. Dollar Index slipped 0.1% on day to 98.29.
EUR/USD gained 0.2% to 1.1099, rising for a fourth straight session. Official data showed that the eurozone's core CPI grew 0.9% on year in May (+0.8% expected).
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.