Asian Morning Brief: APR 21 (TUE)

On Monday U.S. stocks closed lower as market sentiment was impacted by oil price collapsing into negative territory...

On Monday U.S. stocks closed lower as market sentiment was impacted by oil price collapsing into negative territory.

The Dow Jones Industrial Average dropped 592 points (-2.4%) to 23,650, the S&P 500 fell 51 points (-1.8%) to 2,823, and the Nasdaq 100 was down 105 points (-1.2%) to 8,726.

Sourec: GAIN Capital, TradingView

Utilities (-3.89%), Real Estate (-3.74%) and Energy (-3.29%) sectors showed the worst performance.

Macy's (M, -10.3%), Macerich Company (MAC, -10.2%), Vornado Realty Trust (VNO, -9.3%), L Brands (LB, -9.0%) showed significant losses.

Also, Walt Disney (DS, -4.1%), Gilead Sciences (GILD -3.3%) and United Airlines (UAL -4.4%) were among the losers.

Meanwhile, Netflix (NFLX, +3.4%), DuPont (DD, +3.6%), FLIR Systems (FLIR, +14.1%) performed the best.

On the technical side, about 26.4% (22.2% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 96.8% (82.2% in the prior session) were above their 20-day moving average.

Later today, official data on U.S. Existing Homes Sales for March will be released (an annualized rate of 5.25 million units expected).

European stocks were broadly higher, with the Stoxx Europe 600 Index rising 0.7%. Both Germany's DAX and the U.K.'s FTSE 100 added 0.5%, and France's CAC was up 0.7%.

U.S. Treasurys stabilized in price, as the benchmark 10-year U.S. Treasury yield eased to 0.625% from 0.655% Friday.

Spot gold rebounded 12 dollars (+0.8%) to $1,690 an ounce.

The oil market saw an historic event during the session. The May contract for West Texas Intermediate (WTI) futures collapsed to zero before ending the day at minus-$37.63 a barrel, meaning producers have to pay buyers to take oil away or store it. This is the first time in recorded history that crude has dropped into negative territory, far surpassing the 1986 low of $10.20 a barrel.

Meanwhile, the June WTI contract slumped 18.0% to $20.43 a barrel, and Brent crude oil fell 8.9% to $25.57 a barrel.

Sourec: GAIN Capital, TradingView

On the forex front, the U.S. dollar firmed against its major peers, with the ICE Dollar Index gaining 0.2% on day to 99.95.

EUR/USD slipped 0.1% to 1.0865. Spain's central bank said the country's GDP could decline by 6.8% to 12.4% this year. Later today, the German ZEW Current Situation Index for April will be released (-75.0 estimated).

GBP/USD slid 0.5% to 1.2442. Investors will focus on the U.K. jobless rate for the three months to February due later in the day (steady at 3.9% expected).

USD/JPY edged up 0.1% to 107.68. 

The Canadian dollar weakened against the greenback on slumping oil prices. USD/CAD rose 0.9% to 1.4124. On the other hand, official data showed that Canada's wholesale trade sales grew 0.7% on month in February (-0.4% estimated). Later today, retail sales data for February will be released (+0.3% on month expected).

Meanwhile, NZD/USD advanced 0.2% to 0.6044. New Zealand Prime Minister Jacinda Ardern said the coronavirus alert level 4 lockdown in the country will end in a week, where key sectors will resume operations.

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