Asia Morning: Dow, S&P End 7-Day Rally

,

The Nasdaq 100 fell 209 points to 10876 posting a three-day decline...

Trading floor 2

On Tuesday, U.S. stocks ended in negative territory. The Dow Jones Industrial Average slid 104 points (-0.38%) to 27686 and the S&P 500 dropped 26 points (-0.80%) to 3333. Both indexes halted a seven-session rally. The Nasdaq 100 fell 209 points (-1.89%) to 10876 posting a three-day decline.


S&P 500 Index: Daily Chart


Source: GAIN Capital, TradingView


Investors were concerned after Senate Republican leader Mitch McConnell said there was no progress on talks for a COVID-19 relief package.

Technology Hardware & Equipment (-2.45%), Utilities (-2.13%) and Real Estate (-1.87%) sectors led the market lower. Newmont Mining (NEM -7.39%), Occidental Petroleum (OXY -8.01%) and Advanced Micro Devices (AMD -6.52%) lost the most.    

Meanwhile, Wynn Resorts (WYNN +8.36%), Las Vegas Sands (LVS +7.32%), TripAdvisor (TRIP +4.53%) and  Expedia (EXPE +3.78%) posted gains. 

Regarding U.S. economic data, Producer Prices increased 0.6% on month in July (+0.3% expected, -0.2% in June).

European stocks were broadly higher. The Stoxx Europe 600 Index jumped 1.68%, Germany's DAX 30 surged 2.04%, France's CAC 40 climbed 2.41% and the U.K.'s FTSE 100 was up 1.71%.

U.S. government bond prices remained under pressure, as the benchmark 10-year Treasury yield jumped to 0.657% from 0.571% Monday.

Precious metals were sold hard as investors turned optimistic that a coronavirus vaccine would come soon. Spot gold price nose-dived $115.00 or 5.70% to $1,911 an ounce, the biggest daily dollar slide in over seven years. Spot silver price plummeted 14.84% to $24.80 an ounce.

U.S. WTI crude oil futures (September) declined 0.8% to $41.61 a barrel.

On the forex front, the ICE U.S. Dollar Index marked a day-low of 93.18 before bouncing back to 93.64, broadly unchanged from the prior session.

EUR/USD was little changed at 1.1737. The German ZEW Current Situation Index fell to -81.3 in August (-69.5 expected) from -80.9 in July while Expectations Index climbed to 71.5 (55.8 expected) from 59.3. The eurozone's industrial production for June will reported later in the day (+10.0% on month expected).

GBP/USD slipped 0.2% to 1.3051. Official data showed that U.K. jobless rate was steady at 3.9% in the April-June period (4.2% expected). Later today, second quarter GDP (-22.3% on year expected) and June industrial production (+9.0% on month expected) will be released.

USD/JPY advanced 0.5% to 106.53.

USD/CAD lost 0.3% to 1.3308. Government data showed that Canada's housing starts rose to an annualized rate of 245,600 units in July (205,000 units expected) from 212,100 units in June.

Meanwhile, NZD/USD was down 0.4% to 0.6564. The Reserve Bank of New Zealand is expected to keep its benchmark rate at 0.25% unchanged later today.


From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.