Next Investors logo grey

Apple hits US$2 trillion market cap, gold price plummets, ASX futures down 15 points

Published 20-AUG-2020 09:31 A.M.


3 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) gained 45 points or 0.8% on Wednesday as it pushed up to 6189 points.

Among the blue chips, it was a good day for the banks, but the standout performer was CSL after it reported a strong net profit and received further support on the back of its potential involvement in manufacturing and distributing a COVID-19 vaccine.

Overseas markets were mixed last night, and in the US some records were set in the morning only to be erased in the afternoon.

The ASX SPI200 futures index is down 15 points to 6102 points, suggesting our market will take its lead from the US, particularly with some weakness across commodities likely to place a drag on our miners.

24 hours

Other markets in the Asia-Pacific region underperformed the ASX yesterday with the Shanghai Composite falling 1.2% to close at 3408 points.

The sentiment was similar in Hong Kong with the Hang Seng closing down 0.7% at 25,179 points.

The Nikkei 225 showed some resilience, gaining 0.3% to close at 23,110 points.

Europe was the pick of the regions with the FTSE 100 gaining 35 points or 0.6% to close at 6112 points.

The broader Stoxx 600 index gained 0.6% as it closed at 370 points.

However, the DAX and the CAC 40 outperformed, both up nearly 0.8% to close at 12,977 points and 4977 points respectively.

After the S&P 500 and the NASDAQ built on the previous day’s record performances in the morning, all of the major indices turned south in the afternoon.

On a stock specific basis, Apple was in the limelight as it became the first publicly listed US company to surpass the US$2 trillion market capitalisation level.

The Dow finished down 85 points at 27,692 points, while the S&P 500 fell 0.4% to 3374 points.

The NASDAQ lost its mojo in the afternoon, sliding 0.6% or 64 points to close at 11,146 points.

On the commodities front, gold was once again in the spotlight, but for all the wrong reasons.

The precious metal came off nearly 4% or US$79 per ounce to close at US$1934 per ounce.

There was little movement in the Brent Crude Oil Continuous Contract which has spent most of the week trading in a tight range between US$45 per barrel and US$45.50 per barrel.

Hard rock and base metals remain strong

In what may be one of the few bright spots for our big miners today, the iron ore price rose slightly to close at US$129 per tonne.

Copper was the spotlight on the base metals front, finally pushing through the US$3.00 per pound mark to notch up a multi-year high.

Technical investors are likely to see a price of about US$3.25 per pound as the next resistance point, a level it last traded at in mid-2018.

While zinc only gained about 0.8%, this was enough to elevate it to nearly US$1.12 per pound, the peak it hit just prior to a steep plunge which coincided with the onset of coronavirus.

A push above this mark could see it test levels of around US$1.17 per pound.

There was little movement in the nickel price as it consolidated in the vicinity of US$6.50 per pound.

The Australian dollar tracked US equity markets lower, falling below the US$0.72 mark for the first time since Monday when it was in full flight on its way to US$0.73, a level it fell just shy of.

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.