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Asia Morning: Dow Closes Above 30000








On Tuesday, U.S. stocks rallied further pushing the Dow Jones Industrial Average (+455 points or 1.54% to 30046) to close above the key 30,000 level for the first time. The S&P 500 increased 57 points (+1.62%) to 3635, also an all-time high. The Nasdaq 100 rose 173 points (+1.46%) to 12079.

Dow Jones Industrial Average Index (Daily Chart) : Further Adance Above 30,000 Level

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Investors were encouraged by news reports that formal transition for Joe Biden’s potential administration has begun, and that Biden would appoint former Federal Reserve Chair Janet Yellen as his would-be Treasury Secretary.

Banks (+5.52%), Energy (+5.16%) and Automobiles & Components (+4.66%) sectors were the best performers. Energy companies such as Apache (APA +9.06%), Hess (HES +7.14%), Exxon Mobil (XOM +6.66%) and Chevron (CVX +5.04%) surged for a second day as oil prices jumped over 4%.

Dollar Tree (DLTR +13.63%), Mosaic (MOS +12.49%) and JP Morgan Chase (JPM +4.62%) also saw significant gains in share prices.

Approximately 90% (89% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 80% (79% in the prior session) were trading above their 20-day moving average.

According to the S&P CoreLogic Case-Shiller index report, U.S. home prices rose 6.6% on year in September, the biggest increase since April 2018.

European stocks also gained. The Stoxx Europe 600 rose 0.91%, Germany’s DAX advanced 1.26%, France’s CAC 40 increased 1.21%, and the U.K.’s FTSE 100 was up 1.55%.

U.S. Treasury prices slid as investors’ risk appetite expanded further. The benchmark U.S. 10-year Treasury yield climbed to 0.882% from 0.854% Monday.

Spot gold shed $31 (-1.69%) to $1,806 an ounce.

U.S. WTI crude futures (January) jumped $1.82 (+4.23%) to $44.88 a barrel.

The U.S. dollar resumed weakness against other major currencies as investors felt comfortable to bid for riskier assets. The ICE Dollar Index sank 0.39% to 92.14.

Commodity-related currencies benefited from oil prices’ surge. NZD/USD hit 0.7000 for the first time since June 2018, as it was widely expected that New Zealand may not see further interest-rate cuts.

AUD/USD gained 1.02% to 0.7360, while USD/CAD slipped from the key 1.3000 level.

EUR/USD rose 0.43% to 1.1892 ending a two-day decline.

GBP/USD climbed 0.34% to 1.3359 posting a three-day rally.

USD/JPY eased to 104.44 from 104.53 in the prior session, and USD/CHF declined 0.16% to 0.9112.

 



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