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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 9

Article By: ,  Financial Analyst
October 8, 2020 10:14 PM

Asia Morning: U.S. Stocks Rise as Stimulus Tug-of-War Continues

On Thursday, U.S. stocks posted further gains. The Dow Jones Industrial Average rose 122 points (+0.43%) to 28425, the S&P 500 climbed 27 points (+0.80%) to 3446, and the Nasdaq 100 was up 47 points (+0.42%) to 11550.


S&P 500 Index (Daily Chart): Rebound Expected


Sources: GAIN Capital, TradingView


Obviously market optimism was capped by a tug-of-war between the U.S. government and Congress on negotiations over a new fiscal stimulus package.

Energy (+3.73%), Utilities (+1.8%) and Real Estate (+1.59%) sectors performed the best. Energy stocks -- such as Occidental Petroleum (OXY +8.41%), DTE Energy (DTE +6.41%) and Halliburton (HAL +6.92%) -- were major gainers in the S&P 500, boosted by a 3% jump in oil prices.

International Business Machines (IBM +5.94%) jumped after announcing plans for a spin-off of its managed infrastructure services unit. 
  
Approximately 70% (66% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 79% (65% in the prior session) were trading above their 20-day moving average.

The U.S. Labor Department reported that Initial Jobless Claims declined to 840,000 for the week ended October 3 (820,000 expected), and Continuing Claims dropped to 10.976 million for the week ended September 26 (11.400 million expected).

European stocks were broadly higher. The Stoxx Europe 600 Index increased 0.78%, Germany's DAX 30 rose 0.88%, France's CAC 40 gained 0.61% and the U.K.'s FTSE 100 was up 0.53%.

U.S. Treasurys turned stable, as the benchmark 10-year Treasury yield fell to 0.764% from 0.785% Wednesday.

Spot gold rose $6.71 (+0.36%) to $1894/oz.

Oil prices were lifted by reports that over 90% of crude output from the Gulf of Mexico was paused by Hurricane Delta. U.S. WTI crude oil futures (November) jumped $1.33 (+3.33%) to $41.28 a barrel.

On the forex front, the U.S. dollar remained weak relative to its G-10 peers. The ICE Dollar Index edged down to 93.57.

Commodity-related currencies were doing well. AUD/USD was up for a second session gaining 0.37% to 0.7164. USD/CAD sank a further 0.45% to 1.3196.

EUR/USD was little changed at 1.1759, and GBP/USD added 0.14% to 1.2937. Both pairs have been supported by their 20-day moving average.

USD/JPY managed to close above 106.00 for the first time since September 11.

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