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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 20

Article By: ,  Financial Analyst
October 19, 2020 8:03 PM

Asia Morning: U.S. Stocks Tumble as Stimulus Hopes Fade

On Monday, U.S. stocks closed sharply lower. The Dow Jones Industrial Average slumped 410 points (-1.44%) to 28195, the S&P 500 shed 56 points (-1.63%) to 3426, and the Nasdaq 100 tumbled 217 points (-1.84%) 11634.


Nasdaq 100 Index (Daily Chart) : Consolidation

Sources: GAIN Capital, TradingView


Despite House Speaker Nancy Pelosi calling on the government to reconcile remaining disputes on a fiscal stimulus package within 48 hours, no progress was made toward a deal agreement between the government and Congress.

Technology Hardware & Equipment (-2.27%), Energy (-2.1%) and Software & Services (-2.01%) sectors lost the most. Nordstrom (JWN -5.88%), Gartner (IT -4.41%), Ross Stores (ROST -4.37%) and VF (VFC -4.33%) were top losers.  

ConocoPhillips (COP -3.17%) said it has agreed to buy U.S. shale oil producer Concho Resources (CXO -2.76%) for $9.7 billion.

Approximately 75% (74% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 81% (83% in the prior session) were trading above their 20-day moving average. 

European stocks were broadly lower while trading volumes were greatly reduced by a technical glitch at exchange operator Euronext. The Stoxx Europe 600 Index declined 0.18%, Germany's DAX 30 fell 0.42%, France's CAC 40 eased 0.13%, and the U.K.'s FTSE 100 was down 0.59%.

U.S. Treasury prices posted modest losses, as the benchmark 10-year Treasury yield rose to 0.760% from 0.740% Friday.

Spot gold rose $4 (+0.22%) to $1,903 an ounce.

U.S. WTI crude futures (December) declined $0.06 (-0.20%) to $41.06 a barrel.

On the forex front, the U.S. dollar weakened further against other major currencies, though its loss shrank at the end of the session. The ICE Dollar Index lost 0.27% to 93.43.

The British pound was lifted by the European Union's comments that it was ready to intensify talks with Britain toward a trade deal. GBP/USD once breached the key 1.3000 level before closing at 1.2954, up 0.31% on day. 

EUR/USD jumped 0.45% to 1.1769, while USD/JPY was little changed at 105.43.

AUD/USD was down for a fourth session as it dropped 0.1% to 0.7071. China's Gross Domestic Products (GDP) grew 4.9% on year in the third quarter, lower than +5.5% expected. 

Meanwhile, the Chinese yuan reached a fresh 18-month high against the dollar, with USD/CNH (offshore yuan) falling 0.26% to 6.6787.

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