Asia Morning: U.S. Stocks Rebound as Fed Buys Corporate Bonds

Asia Morning: U.S. Stocks Rebound as Fed Buys Corporate Bonds

On Monday, U.S. stocks pared early losses to shut in positive territory, lifted by the Federal Reserve's announcement that it might start buying individual corporate bonds...

On Monday, U.S. stocks pared early losses to shut in positive territory, lifted by the Federal Reserve's announcement that it might start buying individual corporate bonds. The Dow Jones Industrial Average slid 762 points at the open before working its high to shut at 25763, up 157 points or 0.6% on day. The S&P 500 rose 25 points (+0.8%) to 3066, and therefore the Nasdaq 100 was up 113 points (+1.2%) to 9776.

Consumer Durables & Apparel (+2.09%), Insurance (+1.8%) and Food, Beverage & Tobacco (+1.6%) sectors performed the simplest . ViacomCBS (VIAC +8.69%), Lennar Corp (LEN +7.17%) and ONEOK (OKE +6.89%) were top gainers.

On the technical side, about 39.3% (36.3% within the prior session) of stocks within the S&P 500 Index were trading above their 200-day moving average, and 46.2% (32.5% within the prior session) were trading above their 20-day moving average. 

Regarding U.S. economic data, the Empire Manufacturing Index spiked to -0.2 in June (-29.6 expected) from -48.5 in May.

Due later today are May Retail Sales (+8.0% on month expected) and Industrial Production (+3.0% on month expected).

European stocks were broadly lower, with the Stoxx Europe 600 Index easing 0.3%. Germany's DAX declined 0.3%, France's CAC dropped 0.5%, and the U.K.'s FTSE 100 was down 0.7%.

U.S. bond prices came struggling after the Fed announced plans to widen its efforts to support corporate credit markets. The benchmark 10-year U.S. Treasury yield climbed to 0.701% from 0.698% Friday.

Spot gold fell $5.00 (-0.3%) to $1,724 an oz .

U.S. WTI petroleum futures (July) gained 2.4% to $37.12 a barrel.

On the forex front, the ICE U.S. Dollar Index retreated 0.7% on day to 96.62, following a two-day rebound.

EUR/USD bounced 0.7% to 1.1328. Later today, German ZEW Current Situation Index for June are going to be released (-83.0 expected).

GBP/USD advanced 0.6% to 1.2620. U.K. Prime Minister Boris Johnson said he "sees no reason" why his country and therefore the European Union can't reach an agreement by July. Meanwhile, investors will specialise in the U.K. jobless rate for the three months to April due later within the day (4.7% expected).

USD/JPY was little changed at 107.40. The Bank of Japan is predicted to stay its benchmark rate unchanged at -0.10% later today.