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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.
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asia morning nov 6

Article By: ,  Financial Analyst
November 5, 2020 8:16 PM

Asia Morning: U.S. Stocks Keep Rallying Though Election Uncertainty Persists

On Thursday, U.S. stocks showed no signs of fatigue extending their winning streak to a fourth session. The Dow Jones Industrial Average jumped 542 points (+1.95%) to 28390, the S&P 500 rose 67 points (+1.95%) to 3510, and the Nasdaq 100 surged 301 points (+2.56%) to 12078.



Nasdaq 100 Index (Daily Chart) : Bullish Gaps

Sources: GAIN Capital, TradingView


At the same time, investors still faced with uncertainty of the presidential election result.

Automobiles & Components (+5.05%), Materials (+4.05%) and Semiconductors & Semiconductor Equipment (+4.04%) sectors performed the best. Albemarle (ALB +12.92%), Qualcomm (QCOM +12.75%) and Coty Inc (COTY +10.60%) were top gainers.    

Approximately 72% (71% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 49% (51% in the prior session) were trading above their 20-day moving average.

As expected, the U.S. Federal Reserve kept its key interest rate unchanged in a range of 0.00%-0.25%.

U.S. official data showed that initial jobless claims dropped to 751,000 for the week ended October 31 (735,000 expected). Later today, the Labor Department will report the October jobs report (+600,000 nonfarm payrolls, a lower jobless rate at 7.6% expected).

European stocks also remained firm. The Stoxx Europe 600 gained 1.05%, Germany's DAX jumped 1.98%, France's CAC 40 rose 1.24% and the U.K.'s FTSE 100 was up 0.39%.

U.S. Treasury prices were little changed, as the benchmark 10-year Treasury yield ticked up to 0.770%.

Spot gold surged $45 (+2.39%) to $1,948 an ounce.

U.S. WTI crude futures (December) declined $0.64 (-1.63%) to $38.51 a barrel. 

The U.S. dollar got sold after Federal Reserve Chair Jerome Powell reiterated that the economy needs more fiscal and monetary stimulus. The ICE Dollar Index sank 0.94% to 92.53, the lowest level since September 1.

EUR/USD jumped 0.87% to 1.1825. Official data showed that the eurozone's retail sales dropped 2.0% on month in September (-1.5% expected). In Germany, factory orders added 0.5% on month in September (+2.0% expected).

GBP/USD regained the key 1.3000 level as it surged 1.22% to 1.3148. Meanwhile, the Bank of England increased its government bond-buying program by 150 billion pounds, much larger than expected.

USD/JPY lost the 104.00 handle plunging 0.98% to 103.49, the lowest level since March.

Commodity-linked currencies outperformed. AUD/USD gained 1.44% to 0.7283, while USD/CAD shed 0.68% to 1.3045.

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