Asia Morning: U.S. Stocks Down for Second Day

U.S. Treasury Secretary Steven Mnuchin indicates that a deal for further fiscal stimulus is unlikely before the November election...

Trading floor 2

On Wednesday, U.S. stocks sank further. The Dow Jones Industrial Average fell 165 points (-0.58%) to 28514, the S&P 500 dropped 23 points (-0.66%) to 3488, and the Nasdaq 100 was down 97 points (-0.81%) to 11985.


Nasdaq 100 Index (Daily Chart): Consolidation on Upside

Sources: GAIN Capital, TradingView


Pessimistic sentiment grew after U.S. Treasury Secretary Steven Mnuchin indicated that a deal for further fiscal stimulus is unlikely before the November election.

Banks (-2.37%), Retailing (-1.76%) and Telecommunication Services (-1.65%) sectors lost the most. Wells Fargo (WFC -6.02%) and Bank of America (BAC -5.33%) were top losers.  

Approximately 73% of stocks in the S&P 500 Index were trading above their 200-day moving average and 83% were trading above their 20-day moving average.

European stocks were mixed. The Stoxx Europe 600 Index edged down 0.09%, France's CAC 40 eased 0.12%, and the U.K.'s FTSE 100 declined 0.58%, while Germany's DAX 30 edged up 0.07%. France's government declared a public health state of emergency concerning COVID-19.

U.S. Treasury prices was little changed, as the benchmark 10-year Treasury yield dipped to 0.721%.

Spot Gold rose $9.65 (+0.51%) to $1,901 an ounce.

Oil prices were up for a second day after the American Petroleum Institute reported a sharp decline of 5.42 million barrels in the U.S. crude stockpiles. U.S. WTI crude futures (November) jumped $0.83 (+2.06%) to $41.03 a barrel.

On the forex front, the U.S. dollar softened after a strong rebound on Tuesday. The ICE Dollar Index declined 0.14% to 93.40.

EUR/USD hit a nine-day low of $1.1720 before closing flat at 1.1745.

GBP/USD regained the key 1.3000 level as it rebounded 0.58% to 1.3012. Brexit negotiations are widely expected to continue past the deadline (October 15) set by British Prime Minister Boris Johnson.

USD/JPY sank 0.29% to 105.16. Official data showed that Japan's industrial production grew 1.0% on month in August (vs. +8.7% in July). 

AUD/USD added 2 pips to 0.7162. In Australia, the Westpac Consumer Confidence Index increased 11.9% on month in October (vs. +18.0% in September).

USD/CAD was up for a second day as it edged up to 1.3142.


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