Asia Morning: U.S. Stocks Surge as Confidence Builds

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Investors seemed to be convinced that re-opening economies have kissed goodbye to coronavirus-induced lockdowns forever...

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On Monday, U.S. stocks surged with the Nasdaq 100 Index closing 262 points higher (+2.54%) at a fresh record of 10604. The Dow Jones Industrial Average rose 459 points (+1.78%) to 26287, and the S&P 500 advanced 49 points (+1.59%) to 3179.

Dow Jones Industrial Average: Daily Chart

Source: GAIN Capital, TradingView


Prior to the session, China's Shanghai Composite Index soared 5.71% and Hong Kong's Hang Seng Index jumped 3.81%. Investors seemed to be convinced that re-opening economies have kissed goodbye to coronavirus-induced lockdowns forever.


Retailing (+3.57%), Technology Hardware & Equipment (+2.47%) and Consumer Services (+2.43%) sectors were market leaders. Amazon.com (AMZN +5.77% to $3,057.04), Apple (AAPL +2.67% to $373.85) and Microsoft (MSFT +2.15% to $210.70) closed at record levels. 

On the technical side, about 43.3% (41.3% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 39.3% (32.3% in the prior session) were trading above their 20-day moving average.

Regarding U.S. economic data, the Institute for Supply Management (ISM) Non-Manufacturing Index rose to 57.1 in June (50.2 expected).

European stocks advanced further. The Stoxx Europe 600 Index gained 1.58%. Germany's DAX 30 rose 1.64%, France's CAC 40 climbed 1.49%, and the U.K.'s FTSE 100 was up 2.09%.

The benchmark 10-year Treasury yield stepped up to 0.683% from 0.672% last Thursday.

Spot gold price increased $8.00 (+0.5%) to $1,784 an ounce, the highest close since September 2011.

U.S. WTI crude oil futures (August) edged two cents down to settle at $40.63 a barrel.

On the forex front, the ICE U.S. Dollar Index lost 0.4% on day to a two-week low of 96.77.

EUR/USD rose 0.6% to 1.1314. Official data showed that the eurozone's retail sales grew 17.8% on month in May (+15.0% expected) and/while German factory orders increased 10.4% (+15.4% expected). Later today, German industrial production for May will be released (+10.5% on month expected).

GBP/USD gained 0.1% to 1.2495. The Markit U.K. Construction PMI bounced to 55.3 June (46.0 expected) from 28.9 in May.

USD/JPY fell 0.3% to 107.36. Government data showed that Japan's household spending declined 16.2% on year in May (-11.8% expected).

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