Asia Morning: US Stocks Higher Despite Unrest, China

,

On Monday, U.S. stocks managed to close higher, as investors shrugged off violent protests across the country as well as rising U.S.-China tensions...

Trading floor 2

On Monday, U.S. stocks managed to close higher, as investors focused on signs of U.S. economic recovery and shrugged off violent protests across the country as well as rising U.S.-China tensions.  

The Dow Jones Industrial Average climbed 91 points (+0.4%) to 25475, the S&P 500 added 11 points (+0.4%) to 3055 and the Nasdaq 100 was up 43 points (+0.5%) to 9598.


Source: GAIN Capital, TradingView


Automobiles & Components (+3.25%), Real Estate (+2.1%) and Banks (+1.96%) sectors performed the best. 

Coty (COTY +20.94%), TripAdvisor (TRIP +13.33%), Capri Holdings (CPRI +11.70%) and Gap (GPS +11.12%) were top gainers. 

On the technical side, about 44.8% (43.4% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 93.1% (92.9% in the prior session) were above their 20-day moving average.

The Institute for Supply Management's Manufacturing Purchasing Mangers' Index climbed to 43.1 in May (43.7 expected) showing the contraction of factory activity was slowing. The Markit U.S. Manufacturing Purchasing Managers' Index posted 39.8 in May (40.0 expected). Construction Spending declined 2.9% on month in April (-7.0% expected).

Meanwhile, reports said China ordered state-owned agencies to halt purchases of U.S. agriculture products in response to U.S. reaction to Hong Kong. 

European stocks rebounded, with the Stoxx Europe 600 Index rising 1.1%. The U.K.'s FTSE 100 jumped 1.5% and France's CAC was up 1.4%. Germany's market was closed for a holiday.

U.S. Treasury yields climbed amid expectations of lasting economic recovery from impacts of the coronavirus pandemic. The benchmark 10-year Treasury yield rose to 0.662% from 0.650% Friday.

Spot gold price rose $9.00 (+0.6%) to $1,738 an ounce extending its rally to a third session.

U.S. WTI crude oil futures edged down 0.1% to $35.44 a barrel.

On the forex front, the ICE U.S. Dollar Index dropped 0.4% on day to 97.82, the lowest level since mid-March.

EUR/USD gained 0.1% to 1.1129, posting a five-day rally.

More from Indices

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

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.

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