Next Investors logo grey

Global markets retrace, commodities taper, futures down 1%

Published 17-AUG-2020 09:24 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

Supported by a big week from the banks, the S&P/ASX 200 index (XJO) finished 2% higher on a week- on-week basis at 6126 points, helped by a rally of about 0.6% or 35 points on Friday.

However, this strong run looks set to come to a halt on Monday with mainly negative trends emerging from overseas markets on Friday, largely in response to a lack of fiscal stimulus news in the US.

The ASX SPI200 index is down 58 points to 6026 points, pointing to a significant retracement.

There is little in the way of domestic macroeconomic data to be released this week, suggesting our market will be mainly swayed by global trends and a fairly big week on the reporting season front.

Those reporting this week include JB Hi-Fi and GWA Group (consumer goods), Beach Energy, Altium (tech hardware) and BlueScope Steel.

24 hours

In the Asia-Pacific region, the Shanghai Composite finished the week strongly on Friday, increasing 1.2% to 3360 points.

The Nikkei 225 gained 40 points or 0.2% to close at 23,289 points.

The Hang Seng was out of sync with the rest of the region, shedding 0.2% or 47 points as it closed at 25,183 points.

It was all red ink in Europe as indicated by the Stoxx 600 which came off 1.2%.

The FTSE 100 was one of the weaker performers, spiralling 1.5% or 90 points to close at 5769 points.

In mainland Europe, the CAC 40 mirrored the FTSE 100, shedding nearly 1.6% or 80 points to close at 4962 points.

The DAX was one of the better performers, only coming off 0.7%, closing just above the 12,900 point mark.

It was a mixed bag in the US with the Dow eking out a 0.1% gain to close at 27,931 points.

The S&P 500 finished just in the red at 3372 points, while the NASDAQ shed 26 points to close at 30,019 points.

Interestingly, the S&P 500’s close is only 21 points shy of the record set earlier in the week.

After falling below US$2000 per ounce during the week, gold settled in the vicinity of US$1950 per ounce and there appeared to be support for it at that price on Friday.

After pushing well above US$45 per barrel early in the week, the Brent Crude Oil Continuous Contract finished just below that mark, broadly in line with where it started the week.

Iron ore has consolidated around US$122 per tonne.

On the base metals front, nickel rallied strongly on Friday to finish just shy of the previous week’s high of US$6.50 per pound, a level it hadn’t traded at for more than six months.

The Australian dollar strengthened on Friday to finish close to the high of about US$0.718 set earlier in the week.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

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.