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.

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