Asian Morning SNP Up 1 Percent on Hopeful Economy Reopening

Asian Morning: US Stocks Up 1% on Hopeful Economy Reopening

On Monday U.S. stocks advanced further. Investors were encouraged to see that some states started to ease stay-at-home restrictions and reopen businesses in phases amid slowing new coronavirus infections.

The Dow Jones Industrial Average charged 358 points higher (+1.5%) to 24,133, the S&P 500 rose 41 points (+1.5%) to 2,878, and the Nasdaq 100 was up 51 points (+0.6%) to 8,837.

S&P 500 Index: Daily Chart

Source: GAIN Capital, TradingView

All 11 major sectors of the S&P 500 closed higher, with Banks (+5.5%), Automobiles & Components (+3.87%) and Commercial & Professional Services (+3.36%) sectors performing the best.

Kohls Corp (KSS +17.7%), PVH Corp (PVH +15.2%), Nordstrom (JWN +13.6%) and Gap Inc (GPS +12.9%) were among the top gainers.

Coty (COTY -13.2%), Regeneron Pharmaceuticals (REGN -3.3%) and American Airlines (AAL -2.8%) were laggards.

On the technical side, about 23.0% (20.4% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 80.0% (71.7% in the prior session) were above their 20-day moving average.

Later today, official data on Wholesale Inventories for March (preliminary reading, -0.4% on month expected) and the Conference Board's Consumer Confidence Index for April (falling to 88.0 expected) will be released.

European stocks had a good day, with the Stoxx Europe 600 Index jumping 1.7%. Germany's DAX surged 3.1%, the U.K.'s FTSE 100 gained 1.6% and France's CAC bounced 2.6%.

U.S. Treasury prices turned downward as investors' risk appetite grew. The benchmark 10-year U.S. Treasury yield stepped up 6.1 basis points to 0.655%.

Spot gold fell 16 dollars or 1% to $1,710 an ounce.

Oil prices ended a four-day rally. United States Oil Fund (USO -14.8%), the world's largest oil-backed exchange-traded fund, announced plans to exit its long positions in the front-month WTI crude contract.

U.S. WTI crude oil futures plunged 25.0% to $12.78 a barrel, and Brent crude oil futures lost 6.8% to $19.99 a barrel.

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.