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U.S. stocks finish sharply lower as stimulus hopes fade

Asian shares

The Dow Jones Industrial Average lost 1.44%, the S&P 500 dropped 1.63%, and the Nasdaq 100 shed 1.84%

On Monday, U.S. stocks closed sharply lower. The Dow Jones Industrial Average slumped 410 points (-1.44%) to 28195, the S&P 500 shed 56 points (-1.63%) to 3426, and the Nasdaq 100 tumbled 217 points (-1.84%) 11634.

Despite House Speaker Nancy Pelosi calling on the government to reconcile remaining disputes on a fiscal stimulus package within 48 hours, no progress was made toward a deal agreement between the government and Congress.

Technology Hardware & Equipment (-2.27%), Energy (-2.1%) and Software & Services (-2.01%) sectors lost the most. Nordstrom (JWN -5.88%), Gartner (IT -4.41%), Ross Stores (ROST -4.37%) and VF (VFC -4.33%) were top losers.

ConocoPhillips (COP -3.17%) said it has agreed to buy U.S. shale oil producer Concho Resources (CXO -2.76%) for $9.7 billion.

Approximately 75% of stocks in the S&P 500 Index were trading above their 200-day moving average and 81% were trading above their 20-day moving average.

U.S. Treasury prices posted modest losses, as the benchmark 10-year Treasury yield rose to 0.760% from 0.740% Friday.

Spot gold rose $4 (+0.22%) to $1,903 an ounce.

U.S. WTI crude futures (December) declined $0.06 (-0.20%) to $41.06 a barrel.

On the forex front, the U.S. dollar weakened further against other major currencies, though its loss shrank at the end of the session. The ICE Dollar Index lost 0.27% to 93.43.

The British pound was lifted by the European Union’s comments that it was ready to intensify talks with Britain toward a trade deal. GBP/USD once breached the key 1.3000 level before closing at 1.2954, up 0.31% on day.

EUR/USD jumped 0.45% to 1.1769, while USD/JPY was little changed at 105.43.

AUD/USD was down for a fourth session as it dropped 0.1% to 0.7071.

Meanwhile, the Chinese yuan reached a fresh 18-month high against the dollar, with USD/CNH (offshore yuan) falling 0.26% to 6.6787.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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