Asia Morning: U.S. Stocks Lack Significant Momentum

Market sentiment is supported by reports that drug-makers Johnson & Johnson and AstraZeneca will resume trials of COVID-19 vaccines...

Trading floor 2

On Friday, U.S. stocks closed mixed. The Dow Jones Industrial Average dipped 28 points (-0.10%) to 28335, while the S&P 500 added 11 points (+0.34%) to 3465, and the Nasdaq 100 was up 29 points (+0.25%) to 11692.


Dow Jones Industrial Average (Daily Chart) : Bias Remains Bullish

Sources: GAIN Capital, TradingView


Market sentiment was supported by reports that drug-makers Johnson & Johnson (JNJ +0.11%) and AstraZeneca will resume trials of COVID-19 vaccines. Meanwhile, Gilead Sciences' (GILD +0.20%) drug remdesivir became the first COVID-19 treatment approved by the Food and Drug Administration.

Media (+1.3%), Retailing (+0.96%) and Consumer Durables & Apparel (+0.96%) sectors performed the best, while Semiconductors & Semiconductor Equipment (-1.09%), Automobiles & Components (-0.86%) and Energy (-0.55%) sectors lagged behind. 

Nordstrom (JWN +5.60%) was the top gainer. On the other hand, Intel Corp (INTC -10.58%) plunged after its quarterly results missed expectations. 

European stocks were broadly higher. The Stoxx Europe 600 Index rose 0.62%, Germany's DAX 30 climbed 0.82%, France's CAC 40 jumped 1.20% and the U.K.'s FTSE 100 was up 1.29%.

U.S. Treasury prices ticked up, as the benchmark 10-year Treasury yield edged down to 0.840% from 0.845% Thursday.

Spot gold dipped $1 (-0.08%) to $1,902 an ounce.

U.S. WTI crude futures (December) fell $0.88 (-2.17%) to $39.76 a barrel.

On the forex front, the U.S. dollar resumed its weakness against other major currencies. The ICE Dollar Index dropped 0.20% to 92.76. On a daily chart, the 20-day moving average has crossed below the 50-day one. The Markit U.S. Manufacturing Purchasing Managers Index (PMI) (preliminary reading) edged up to 53.3 in October (53.5 expected). 

EUR/USD rebounded 0.37% to 1.1862. On technical terms, the pair has confirmed a bullish signal of 20-day/ 50-day  moving-average-crossover. The Markit Eurozone Manufacturing PMI (preliminary reading) rose to 54.4 in October (53.0 expected). 

GBP/USD was down for a second day as it slipped 0.33% to 1.3039. U.K. official data showed that retail sales gained 1.5% on month in September (+0.2% expected), while the GfK consumer confidence index fell to -31 in October (-28 expected). The Markit U.K. Manufacturing PMI (preliminary reading) posted at 53.3 for October (53.1 expected).

USD/JPY slipped 0.12% to 104.73. Official data showed that Japan's Consumer Prices were flat on year in September (as expected).

AUD/USD gained 0.32% to 0.7140, while USD/CAD dipped a further 0.09% to 1.3124.


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