Asia Morning July 24
Asia Morning: Tech Shares Lead US Market Sell-off
Nasdaq 100 Index: Daily Chart
Source: GAIN Capital, TradingView
Market sentiment was dampened by a spike in unemployment claims and worries of a new round of lockdowns amid rising coronavirus cases.
Technology Hardware & Equipment (-3.26%), Software & Services (-2.55%) and Retailing (-2.48%) sectors lost the most. Citrix Systems (CTXS -12.93%), Allegion Plc (ALLE -8.10%), Align Technology (ALGN -5.95%) and Chipotle Mexican Grill (CMG -5.42%) were the top losers.
On the technical side, about 57.0% (53.4% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 89.3% (87.5% in the prior session) were trading above their 20-day moving average.
In after-marker hours, Intel (INTC -1.06%) posted second quarter adjusted earnings per share of $1.23 (beating expectations) while warning of further delays in development of its superfast seven-nanometer chip technology.
U.S. official data showed that Initial Jobless Claims rose to 1.416 million for the week ended July 18 (1.300 million expected), while Continuing Claims unexpectedly fell to 16.197 million for the week ended July 11 (17.100 million expected).
The Conference Board Leading Index increased 2.0% on month in June (+2.1% expected).
Due later today are reports on Markit U.S. Manufacturing Purchasing Managers' Index (a rise in July preliminary reading to 52.0 expected) and New Homes Sales (an increase in June annualized rate of 700,000 units expected).
European stocks were little changed. The Stoxx Europe 600 Index, Germany's DAX 30, France's CAC 40 and the U.K.'s FTSE 100 were all broadly flat at close.
The benchmark U.S. 10-year Treasury yield remained under pressure drifting lower to 0.581%.
Spot gold price advanced a further $16.00 (+0.9%) to $1,887 an ounce extending its winning streak to a fifth session. On the other hand, spot silver retreated 1.8% to $22.59 an ounce halting a four-day rally.
U.S. WTI crude oil futures (August) lost 2.0% to settle at $41.07 a barrel.
On the forex front, the ICE U.S. Dollar Index fell 0.2% on day to 94.78, down for a fifth straight session.
EUR/USD rose 0.3% to 1.1600, posting a five-day rally. Official data showed that the eurozone's Consumer Confidence Index slipped to -15.0 in July (-12.0 expected) from -14.7 in June. On the other hand, Research firm Markit will release the eurozone's July Manufacturing PMI (50.1 expected) and Services PMI (51.0 expected) later in the day.
GBP/USD was little changed at 1.2736. Later today, the Markit U.K. Manufacturing PMI (52.0 expected) and Services PMI (51.5 expected) for July will be reported.
USD/JPY dropped 0.3% to 106.85.
AUD/USD lost 0.5% to 0.7103.
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.
© City Index 2024