Asia Morning August 27

Asia Morning: S&P 500 and Nasdaq 100 Post Five-day Rally

On Wednesday, U.S. stocks closed higher. The Nasdaq 100 jumped 250 points (+2.1%) to 11,971 and the S&P 500 rose 35 points (+1.0%) to 3,478, both up for a fifth straight session. The Dow Jones Industrial Average gained 83 points (+0.3%) to 28,331.

Nasdaq 100 Daily Chart:

Source: Gain Capital, TradingView

Media (+4.43%), Software & Services (+3.15%) and Retailing (+2.14%) sectors led the rally. Approximately 61.2% of stocks in the S&P 500 Index were trading above their 200-day moving average and 66.3% were trading above their 20-day moving average.

Regarding U.S. economic data, durable goods orders rose 11.2% on month in July (+4.8% expected).

Federal Reserve Chairman Jerome Powell's scheduled speech at Jackson Hole meeting will be the key focus today. Meanwhile, the second estimate of U.S. 2Q annualized GDP (-32.5% on quarter expected) and initial jobless claims for the week ending August 22 (1 million expected) will be released later in the day.

European stocks were broadly higher. The Stoxx Europe 600 Index advanced 0.8%, Germany's DAX 30 rose 1.0%, France's CAC 40 was up 0.8% and the U.K.'s FTSE 100 gained 0.1%.

The benchmark U.S. 10-year Treasury yield climbed to 0.688% from 0.684% Tuesday.

WTI crude oil futures (October) edged up 0.1% to $43.39 a barrel. The U.S. Energy Information Administration reported that crude inventories dropped 4.69 million barrels in the week ending August 21 (-2.53 million barrels expected). Meanwhile, Hurricane Laura has grown into a powerful Category 4 storm that potentially poses devastating threats to areas near the Texas-Louisiana border, according to the National Hurricane Center.

Spot gold marked a day-low near $1,903 before ending up 1.4% at $1,954.

On the forex front, the ICE U.S. Dollar Index slipped 0.1% on day to 92.89, ahead of Fed Chairman Jerome Powell's scheduled speech today.

EUR/USD gained 0.1% to 1.1839.

GBP/USD advanced 0.5% to 1.3217. It is reported that Germany has canceled plans to discuss Brexit at a high-level diplomatic meeting next week due to a lack of "tangible progress" in talks.

USD/JPY retreated 0.4% to 105.89.

Commodity-linked currencies were broadly higher against the greenback. AUD/USD rose 0.7% to 0.7240 and NZD/USD surged 1.2% to 0.6627, while USD/CAD fell 0.2% to 1.3143.

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.