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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 Oct 15

Article By: ,  Financial Analyst
October 14, 2020 9:59 PM

Asia Morning: U.S. Stocks Down for Second Day

On Wednesday, U.S. stocks sank further. The Dow Jones Industrial Average fell 165 points (-0.58%) to 28514, the S&P 500 dropped 23 points (-0.66%) to 3488, and the Nasdaq 100 was down 97 points (-0.81%) to 11985.


Nasdaq 100 Index (Daily Chart): Consolidation on Upside

Sources: GAIN Capital, TradingView


Pessimistic sentiment grew after U.S. Treasury Secretary Steven Mnuchin indicated that a deal for further fiscal stimulus is unlikely before the November election.

Banks (-2.37%), Retailing (-1.76%) and Telecommunication Services (-1.65%) sectors lost the most. Wells Fargo (WFC -6.02%) and Bank of America (BAC -5.33%) were top losers.  

Approximately 73% of stocks in the S&P 500 Index were trading above their 200-day moving average and 83% were trading above their 20-day moving average.

European stocks were mixed. The Stoxx Europe 600 Index edged down 0.09%, France's CAC 40 eased 0.12%, and the U.K.'s FTSE 100 declined 0.58%, while Germany's DAX 30 edged up 0.07%. France's government declared a public health state of emergency concerning COVID-19.

U.S. Treasury prices was little changed, as the benchmark 10-year Treasury yield dipped to 0.721%.

Spot Gold rose $9.65 (+0.51%) to $1,901 an ounce.

Oil prices were up for a second day after the American Petroleum Institute reported a sharp decline of 5.42 million barrels in the U.S. crude stockpiles. U.S. WTI crude futures (November) jumped $0.83 (+2.06%) to $41.03 a barrel.

On the forex front, the U.S. dollar softened after a strong rebound on Tuesday. The ICE Dollar Index declined 0.14% to 93.40.

EUR/USD hit a nine-day low of $1.1720 before closing flat at 1.1745.

GBP/USD regained the key 1.3000 level as it rebounded 0.58% to 1.3012. Brexit negotiations are widely expected to continue past the deadline (October 15) set by British Prime Minister Boris Johnson.

USD/JPY sank 0.29% to 105.16. Official data showed that Japan's industrial production grew 1.0% on month in August (vs. +8.7% in July). 

AUD/USD added 2 pips to 0.7162. In Australia, the Westpac Consumer Confidence Index increased 11.9% on month in October (vs. +18.0% in September).

USD/CAD was up for a second day as it edged up to 1.3142.

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