ASX tipped to open lower following negative sentiment in overseas markets
Published 21-SEP-2020 09:09 A.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
The S&P/ASX 200 index (XJO) fell 19 points or 0.3% on Friday, but on a week-on-week basis the index finished just in the black.
The big miners along with mid-tier gold stocks helped to offset significant falls across the financial sector as the big banks came under pressure.
The financials index finished down 1.8% on a week-on-week basis, and each of the big four banks fell in line with the index.
Given negative sentiment in overseas markets, it is likely that ASX stocks will come under pressure on Monday, and this is supported by the ASX SPI200 index which is down 36 points to 5836 points.
European markets were already in decline when Wall Street opened, and the FTSE 100 finished 42 points lower at 6007 points.
France was one of the biggest casualties among mainland European markets with the CAC 40 declining 61 points or 1.2% to close at 4978 points.
Losses were more measured in Germany with the DAX closing 0.7% lower at 13,116 points.
US markets started to trend lower from the opening bell, and while there was a steadying in declines in afternoon trading, the mood was decidedly negative.
The Dow fell 0.9% or 244 points to close at 27,657 points, while the S&P 500 declined 1.1% to 3319 points.
Even the NASDAQ couldn’t withstand the broader market trends, falling more than 1% or 117 points to close at 10,793 points.
This put paid to the index’s mid-week rally as it finished some 450 points shy of its five day high.
While the Brent Crude Oil Continuous Contract lost some ground on Friday, it still finished up more than 8% on a week on week basis, having increased from less than US$40 per barrel to close at US$43.15 per barrel.
Gold finished around the mid-point of its one-week trading range at US$1962 per ounce.
Iron ore increased more than 2% as it closed in on US$125 per tonne.
On the base metals front, copper finished the week strongly, pushing above US$3.10 per pound for the first time since mid-2018.
Zinc and lead were up slightly, while nickel fell substantially from US$6.81 per pound to US$6.70 per pound, now well short of the high of US$7.14 per pound that it struck at the start of the month.
The Australian dollar is fetching US$0.73.
General Information Only
This material has been prepared by Jason Price. Jason Price is an authorised representative (AR 000296877) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C), and a Director of S3 Consortium Pty Ltd (trading as StocksDigital).
This material is general advice only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with personal financial or tax advice and does not take into account your personal objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, Jason Price, StocksDigital, any of their related body corporates or any other person. To the maximum extent possible, 62C, Jason Price, StocksDigital, their related body corporates or any other person do not accept any liability for any statement in this material.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.