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Asia Morning: Nasdaq 100 Index At Record For Second Day

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Fundamental analysis of Forex market

On Monday, U.S. stocks charged higher as investors’ appetite for risky assets was boosted by the surprisingly upbeat May jobs report. Investors’ confidence was also boosted by the Federal Reserve’s announcement of widening its Main Street lending program.

For a second straight session the Nasdaq 100 marked a fresh record close as it added 77 points (+0.8%) to 9901. The Dow Jones Industrial Average rose 461 points (+1.7%) to 27572, and the S&P 500 gained 38 points (+1.2%) to 3232.

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Energy (+4.32%), Consumer Services (+3.1%) and Banks (+2.78%) sectors were market leaders.

Coty (COTY +22.24%), Norwegian Cruise Line (NCLH +19.75%), Macerich Company (MAC +17.65%), Alaska Air (ALK +17.60%), Occidental Petroleum (OXY +17.36%) and Boeing (BA +12.2%) were top gainers.

On the technical side, about 60.6% (50.6% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 92.7% (91.5% in the prior session) were above their 20-day moving average.

Later today, the National Federation of Independent Business’s Small Business Optimism Index (a rise to 92.5 in May expected) and Wholesale Inventories (final reading, +0.4% on month in April expected) will be reported.

European stocks retreated from their recent rally, with the Stoxx Europe 600 Index easing 0.3%. Both Germany’s DAX and the U.K.’s FTSE 100 declined 0.2%, and France’s CAC was down 0.4%.

The recent sell-off in U.S. Treasuries eased, as the benchmark 10-year Treasury yield declined to 0.883% from 0.903% Friday.

Spot gold price rebounded $16.00 (+1.0%) to $1,697 an ounce.

U.S. WTI crude oil futures (July) retreated from a three-month high losing 3.4% to $38.19 a barrel.

On the forex front, the ICE U.S. Dollar Index fell 0.2% on day to 96.70. The Federal Reserve announced that it will expand its Main Street Lending Program to support small and mid-sized businesses.

EUR/USD edged up 0.1% to 1.1296. Official data showed that German industrial production declined 17.9% on month in April (-16.5% expected).

GBP/USD climbed 0.6% to 1.2734, rising for an eighth straight session. USD/JPY dropped 1.1% to 108.47, halting a four-day rally.