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AUD hits 15 month high, ASX Futures up as gold makes new all-time high

Published 28-JUL-2020 10:18 A.M.


2 minute read

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The S&P/ASX 200 index (XJO) defied Friday’s negative leads from overseas to post a gain of 20 points or 0.3% on Monday.

As the index edged up to its close of 6044 points, it was mainly gold miners riding on the back of a record gold price that provided the boost.

Australian producers are benefiting from favourable foreign exchange rates, and good gains were made by majors Newcrest Mining (ASX: NCM) (+5%), Northern Star (ASX: NST) (+4%) and Saracen Minerals (ASX: SAR) (+5.2%).

This support is likely to continue on Tuesday as the gold price blitzed the previous all-time intraday record of US$1917 per ounce, gaining more than 2% or US$44 per ounce to hit US$1941.90 (A$2720) per ounce.

US markets also performed strongly, possibly nullifying yesterday’s mixed moves in the Asia-Pacific and European regions.

The ASX SPI200 futures index suggests we are in for a positive day, up 26 points to 6034 points.

24 hours

Markets were mixed in the Asia-Pacific region with the Shanghai Composite delivering a similar proportionate gain to the XJO, increasing nearly 0.3% to close at 3205 points.

Negative sentiment prevailed in Hong Kong with the Hang Seng falling 102 points to 24,603 points.

The Nikkei 225 came off nearly 0.2% or 35 points to close at 22,715 points.

In the UK, the FTSE 100 retraced late in the day to finish down 19 points or 0.3% at 6105 points.

In mainland Europe the DAX was flat, finishing close to its previous day’s close of 20,838 points, while the CAC 40 shed 0.3% to close at 4939 points.

The NASDAQ was back in full force in the US, surging 173 points or 1.7% to close at 10,536 points, now just 230 points shy of last Monday’s all-time record close.

Shares in Moderna (NASDAQ: MRNA) soared 9% after the company was granted an additional US$472 million from the US government's Biomedical Advanced Research and Development Authority (BARDA).

This funding will support a phase 3 program for Moderna's COVID-19 mRNA vaccine candidate mRNA-1273, and it follows a previous grant of US$483 million from BARDA.

The Dow gained 0.4% or 115 points to close at 26,584 points, while the S&P 500 rallied 0.7% to 3239 points.

Obviously, it was gold that stole the headlines on the commodities front, but there was a late surge in the Brent Crude Oil Continuous Contract as it increased more than 2% from about US$43 per barrel to US$44 per barrel.

Iron ore gave up some of its recent gains, falling 1.6% to US$107.70 per tonne.

Amongst the base metals, copper was relatively flat and zinc increased 1% to push back above US$1.00 per pound.

Nickel continued its strong performance, closing in on US$6.20 per pound, up US$0.45 per pound in the last month, and now sitting at a near six month high.

However, lead was the standout performer as it gained 2.8% to push beyond US$0.83 per pound.

The Australian dollar continued to make ground against the US dollar, and it is now fetching 71.5 US cents, up approximately 25% since mid-March.

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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.

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