Asia Morning: U.S. Stocks Keep Rallying Though Election Uncertainty Persists

Federal Reserve Chair Jerome Powell says the economy needs more fiscal and monetary stimulus...

Trading floor 2

On Thursday, U.S. stocks showed no signs of fatigue extending their winning streak to a fourth session. The Dow Jones Industrial Average jumped 542 points (+1.95%) to 28390, the S&P 500 rose 67 points (+1.95%) to 3510, and the Nasdaq 100 surged 301 points (+2.56%) to 12078.



Nasdaq 100 Index (Daily Chart) : Bullish Gaps

Sources: GAIN Capital, TradingView


At the same time, investors still faced with uncertainty of the presidential election result.

Automobiles & Components (+5.05%), Materials (+4.05%) and Semiconductors & Semiconductor Equipment (+4.04%) sectors performed the best. Albemarle (ALB +12.92%), Qualcomm (QCOM +12.75%) and Coty Inc (COTY +10.60%) were top gainers.    

Approximately 72% (71% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 49% (51% in the prior session) were trading above their 20-day moving average.

As expected, the U.S. Federal Reserve kept its key interest rate unchanged in a range of 0.00%-0.25%.

U.S. official data showed that initial jobless claims dropped to 751,000 for the week ended October 31 (735,000 expected). Later today, the Labor Department will report the October jobs report (+600,000 nonfarm payrolls, a lower jobless rate at 7.6% expected).

European stocks also remained firm. The Stoxx Europe 600 gained 1.05%, Germany's DAX jumped 1.98%, France's CAC 40 rose 1.24% and the U.K.'s FTSE 100 was up 0.39%.

U.S. Treasury prices were little changed, as the benchmark 10-year Treasury yield ticked up to 0.770%.

Spot gold surged $45 (+2.39%) to $1,948 an ounce.

U.S. WTI crude futures (December) declined $0.64 (-1.63%) to $38.51 a barrel. 

The U.S. dollar got sold after Federal Reserve Chair Jerome Powell reiterated that the economy needs more fiscal and monetary stimulus. The ICE Dollar Index sank 0.94% to 92.53, the lowest level since September 1.

EUR/USD jumped 0.87% to 1.1825. Official data showed that the eurozone's retail sales dropped 2.0% on month in September (-1.5% expected). In Germany, factory orders added 0.5% on month in September (+2.0% expected).

GBP/USD regained the key 1.3000 level as it surged 1.22% to 1.3148. Meanwhile, the Bank of England increased its government bond-buying program by 150 billion pounds, much larger than expected.

USD/JPY lost the 104.00 handle plunging 0.98% to 103.49, the lowest level since March.

Commodity-linked currencies outperformed. AUD/USD gained 1.44% to 0.7283, while USD/CAD shed 0.68% to 1.3045.

More from Commodities

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.