Asia Morning August 26

Asia Morning: S&P, Nasdaq at Records Again, Dow Eases

On Tuesday, U.S. stocks closed mixed. While both the S&P 500 (+12 points or 0.36% to 3443) and the Nasdaq 100 (+95 points or 0.82% to 11721) closed at record levels again, the Dow Jones Industrial Average eased 60 points (-0.21%) to 28248.

S&P 500 Index: Daily Chart

Sources: GAIN Capital, TradingView

Media (+1.23%), Consumer Services (+1.19%) and Software & Services (+1.18%) sectors performed the best, while Energy (-1.42%), Automobiles & Components (-1.08%) and Utilities (-0.92%) sectors were laggards.

Gap (GPS +10.39%), J.M. Smucker (SJM +6.87%), Amgen (AMGN +5.37%) and Starbucks (SBUX +5.13%) were top gainers. On the other hand, Best Buy (BBY -4.03%), Exxon Mobil (XOM -3.17%) and Phillips 66 (PSX -3.17%) were top losers.

Approximately 61.2% (58.8% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 67.7% (50.9% in the prior session) were trading above their 20-day moving average.

Regarding U.S. economic data, the Conference Board Consumer Confidence Index dropped to a six-year low of 84.8 in August (93.0 expected). New Home Sales jumped to an annualized rate of 901,000 units in July (790,000 units expected).

Due later today were reports on Durable Goods Orders (July preliminary reading, +4.5% on month expected).

European stocks lacked upward momentum. The Stoxx Europe 600 Index declined 0.30%, the U.K.'s FTSE 100 shed 1.11%, while both Germany's DAX 30 and France's CAC 40 were broadly flat at close.

U.S. government bonds prices eased further, as the benchmark U.S. 10-year Treasury yield rose to 0.693% from 0.649% Monday.

Spot gold was little changed at $1,928 an ounce.

U.S. WTI crude oil futures (September) jumped 1.7% to $43.35 a barrel. Hurricane Laura is expected to reach the Gulf of Mexico later this week and traders are watching closely how oil output there would be disrupted.

On the forex front, the ICE U.S. Dollar Index dropped 0.3% on day to 93.01.

EUR/USD advanced 0.4% to 1.1832. Official data showed that Germany's second quarter GDP was confirmed at -9.7% on quarter (-10.1% expected and previously estimated). On the other hand, the German IFO Business Climate Index rose to 92.6 in August (92.2 expected) from 90.4 in July.

GBP/USD rose 0.6% to 1.3147.

USD/JPY climbed 0.4% to 106.37, up for a second straight session.

NZD/USD gained 0.3% to 0.6546. Official data showed that New Zealand recorded a trade surplus of 282 million New Zealand dollars (293 million New Zealand dollars surplus expected), where exports totaled 4.91 billion New Zealand dollars (as expected).

Other commodity-linked currencies were broadly higher against the greenback, as market sentiment was boosted by progress in U.S.-China phase-one trade deal. AUD/USD rose 0.5% to 0.7193, while USD/CAD slid 0.4% to 1.3168.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.