Asia Morning July 10

Asia Morning: U.S. Stocks Mixed as Oil Prices Sink

On Thursday, U.S. stocks ended mixed with the Nasdaq 100 Index (+87 points or 0.82% to 10754) marking another record close. The Dow Jones Industrial Average shed 361 points (-1.39%) to 25706, and the S&P 500 fell 17 points (-0.56%) to 3152.

Dow Jones Industrial Average: Daily Chart

Source: GAIN Capital, TradingView

Investors began to doubt smooth reopening from the coronavirus shutdowns. As new infections per day in the U.S. spike to more than 50,000, state governors are slowing the return to business.

Retailing (+1.79%), Food & Staples Retailing (+1.38%) and Semiconductors & Semiconductor Equipment (+1.27%) sectors performed the best, while Energy (-4.85%), Automobiles & Components (-4.06%) and Consumer Durables & Apparel (-2.92%) stocks were laggards. Amazon.com (AMZN +3.29% to $3,182.63), Apple (AAPL +0.36% to $382.73), and Netflix (NFLX +0.99% to $507.76) again closed at record levels.

On the technical side, about 42.5% (42.5% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 47.9% (43.0% in the prior session) were trading above their 20-day moving average.

The U.S. Labor Department reported that Initial Jobless Claims declined to 1.314 million for the week ended July 4 (1.375 million expected), meaning nearly 50 million Americans have filed for such benefits since mid-March. Continuing Claims fell to 18.062 million for the week ended June 27 (18.800 million expected).

Due later today is a report on Producer Price Index (PPI, +0.4% on month in June expected).

European stocks were broadly lower. The Stoxx Europe 600 Index dropped 0.77%. Germany's DAX 30 was little changed, France's CAC 40 sank 1.21%, and the U.K.'s FTSE 100 was down 1.73%.

The benchmark 10-year Treasury yield declined 4.8 basis points to 0.605%, the lowest level since April 24.

Spot gold price eased $5.00 (-0.3%) to $1,803 an ounce, halting a five-session rally.

Oil prices retreated as caution grew about continued momentum of the economic recovery. U.S. WTI crude oil futures (August) settled 3.1% lower at $39.62 a barrel.

On the forex front, the ICE U.S. Dollar Index bounced 0.3% on day to 96.78, amid reduced investors' risk appetite.

EUR/USD lost 0.4% to 1.1288.

GBP/USD was flat at 1.2607, after a three-day rally.

USD/JPY was little changed at 107.21.

Canadian dollar was dragged lower against the greenback as oil prices plunged. USD/CAD advanced 0.5% to 1.3579.

From time to time, StoneX Financial 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.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.