Asia Morning Sep 3

Asia Morning: S&P 500 and Nasdaq 100 at Record Highs Again

On Wednesday, U.S. stocks extended their rally. Nasdaq 100 advanced for a fourth straight session, adding 127 points (+1.0%) to 12420, and S&P 500 jumped 54 points (+1.5%) to 3580, both hitting fresh records. The Dow Jones Industrial Average surged 454 points (+1.6%) to 29100.

Dow Jones Industrial Average daily chart:

Source: Gain Capital, TradingView

Automobiles & Components (+3.14%), Utilities (+3.12%) and Semiconductors & Semiconductor Equipment (+2.87%) sectors led the rally. Approximately 62.2% of stocks in the S&P 500 Index were trading above their 200-day moving average and 61.2% were trading above their 20-day moving average.

Regarding U.S. economic data, ADP private jobs increased 428,000 in August (+1 million expected) and factory orders grew 6.4% on month in July (+6.1% expected).

Later today, investors will focus on the Institute for Supply Management's Services PMI for August (57.0 expected) and initial jobless claims for the week ending August 29 (0.95 million expected).

European stocks were broadly higher. The Stoxx Europe 600 Index rallied 1.8%, Germany's DAX 30 rose 2.1%, France's CAC 40 gained 1.9% and the U.K.'s FTSE 100 was up 1.4%.

The benchmark U.S. 10-year Treasury yield fell to 0.6477% from 0.6689% Tuesday, posting a four-day decline.

WTI crude oil futures (October) slid 2.9% to $41.51 a barrel, pressured by the rebound in U.S. dollar. Meanwhile, the U.S. Energy Information Administration (EIA) reported that crude oil inventories dropped 9.36M barrels in the week ending August 28 (-2.14 million barrels expected).

Spot gold sank 1.4% to $1,943 an ounce, as the U.S. dollar gained strength.

On the forex front, the U.S. dollar strengthened for a second straight session, with the ICE Dollar Index gaining 0.4% on day to 92.65.

EUR/USD dropped 0.5% to 1.1854. Official data showed that German retail sales declined 0.9% on month in July (+0.5% expected). Later today, the eurozone's retail sales data for July will be released (+1.0% on month expected).

GBP/USD slipped 0.2% to 1.3354. European Union's chief negotiator Michel Barnier said he was "worried and disappointed" about the lack of concessions from the British government.

USD/JPY climbed 0.3% to 106.22, posting a three-day rally.

AUD/USD slid 0.5% to 0.7336. Government data showed that the Australian economy contracted 6.3% on year in the second quarter (-5.1% expected).

Other commodity-linked currencies were broadly higher against the greenback. NZD/USD edged up 0.2% to 0.6769, while USD/CAD fell 0.1% to 1.3045.

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.