Asia Morning August 28

On Thursday, U.S. stocks closed mixed. S&P 500 extended its rally to a sixth straight session, adding 5 points (+0.2%) to 3,484. The Dow Jones Industrial Average rose 160 points (+0.6%) to 28,492, while the Nasdaq 100 dropped 45 points (-0.4%) to 11,926.

Dow Jones Industrial Average daily chart:

Source: Gain Capital, TradingView

The Food & Staples Retailing (+2.58%), Banks (+2.5%) and Insurance (+1.7%) sectors gained the most, while the Media (-1.5%), Retailing (-1.13%) and Semiconductors & Semiconductor Equipment (-1.06%) sectors were the worst performers.

Approximately 59.8% of stocks in the S&P 500 Index were trading above their 200-day moving average and 61.0% were trading above their 20-day moving average.

Federal Reserve Chairman Jerome Powell said they "will seek to achieve inflation that averages 2% over time", meaning that "following periods when inflation has been running below 2%, appropriate monetary policy will likely aim to achieve inflation moderately above 2% for some time".

Regarding U.S. economic data, second quarter annualized GDP was revised to -31.7% on quarter (-32.5% expected and -32.9% previously), while initial jobless claims fell to 1.006 million in the week ended August 22 (1 million expected) from 1.104 million in the prior week.

Later today, U.S. personal spending for July (+1.5% on month expected) and Market News International's Chicago PMI for August (52.6 expected) will be released.

European stocks were broadly lower. The Stoxx Europe 600 Index dropped 0.8%, Germany's DAX 30 lost 0.7%, France's CAC 40 slid 0.6% and the U.K.'s FTSE 100 was down 0.8%.

The benchmark U.S. 10-year Treasury yield jumped to a two-month high of 0.7522% from 0.6884% Wednesday.

WTI crude oil futures (October) fell 0.8% to $43.04 a barrel. Hurricane Laura, which caused shutdown of Gulf oil production, had lost its power and was downgraded to a tropical storm.

Spot gold saw volatile trading, as it marked a day-high near $1,976 before closing at $1,929, down 1.3%.

On the forex front, the ICE U.S. Dollar Index marked a day-low of 92.44 before ending up 0.2% at 92.99, amid mixed reactions to Fed Chairman Jerome Powell's speech.

EUR/USD slipped 0.1% to 1.1820. Later today, the eurozone's Economic Confidence Index for August will be released (85.0 expected).

GBP/USD fell 0.1% to 1.3198.

USD/JPY bounced 0.6% to 106.57. This morning, official data showed that Japan's Tokyo CPI grew 0.3% on year in August (+0.6% expected).

USD/CAD edged down 0.1% to 1.3125, posting a three-day decline. Canada's second quarter annualized GDP will be released later in the day (-39.4% on quarter expected).

Commodity-linked currencies were broadly higher against the greenback. AUD/USD climbed 0.4% to 0.7260 and NZD/USD rose 0.3% to 0.6640, both up for a third straight session.

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.