Next Investors logo grey

Mixed overseas markets, but little has changed with ASX futures

Published 14-AUG-2020 09:32 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

Global share markets were mixed overnight as investors assessed the prospect of additional stimulus in the US, along with subdued economic data in light of the record-breaking rally.

The S&P 500 briefly traded above its record closing high, before dipping in the afternoon to finish slightly lower. The Nasdaq eked out a small gain, however European markets traded in the red after Washington announced tariffs on European goods would continue.

Australia’s share market opened marginally higher, but the optimism was short-lived as equities declined gradually throughout the day. The ASX 200 ended the day 0.67% lower to be last quoted at 6,091 points.

ASX SPI futures trade a mere 2 points lower at 7 a.m. pointing to a flat open in Sydney.

24 hours

While Wall Street has recovered most of the trillions in market capitalisation lost during the start of the pandemic, the Nasdaq was the first of the three major indices to hit a record high in June. The S&P 500 briefly eclipsed is own record this week, but the Dow remains below its peak.

It's a different story in most other markets as indices in Asia and Europe remain well below their all-time highs. However, the 5-month global rally has caused MSCI’s world index to rise a staggering 50% from its March lows and reach within 2% of an all-time high – largely driven by the US market.

In Asia Japanese stocks were the main mover in overnight trade, jumping 1.78% to a six-month high. The Nikkei closed the day at 23,249.61 points.

The Hang Seng traded relatively flat, down only 0.05% to 25,230.67 points.

European markets underperformed most of its peers, after the US government said it would maintain 15% tariffs on planes and 25% tariffs on other European goods.

The STOXX 600 index suffered its first fall in five days. The pan-European index lost 0.63%, weighed down by a 0.5% fall in Germany and a 1.5% slump of UK shares.

MSCI’s gauge of stocks across the globe shed 0.14%.

In commodity markets we saw gold rebounding after this week’s pullback. The precious metal rebounded 0.74% to US$1,963.4 an ounce.

Oil prices traded mostly lower after the International Energy Agency lowered its 2020 oil demand. West Text Intermediate crude oil futures fell 0.8%, however Brent managed to post a small gain.

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.