Dow notches up seventh day of gains, but futures point to a flat day
Published 11-AUG-2020 10:10 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 Australian sharemarket started the week strongly with the S&P/ASX 200 gaining 105 points or nearly 1.8% to close at 6110 points.
It was mainly positive economic data coming out of the US in terms of its labour force report that contributed to the momentum, but it was also a big day for the banks with the CBA leading the way as its shares increased approximately 3.4% to close at $73.98.
Another 1% gain would see CBA make a near six-month high.
With most markets gaining ground overnight, one would expect another positive day, but the ASX SPI200 Futures Index is only up two points to 6072 points.
This may suggest that yesterday’s significant spike will be the precursor to some consolidation.
24 hours
Markets were mixed in the Asia-Pacific region yesterday with the Shanghai Composite the only major index to finish in positive territory, gaining 0.7% to close at 3379 points.
Elsewhere, the Hang Seng and the Nikkei 225 came off 0.6% and 0.4% to close at 24,377 points and 22,330 points respectively.
While European markets finished in the black, there weren’t any big moves.
The FTSE 100 gained 18 points to close at 6050 points.
In mainland Europe, the DAX just eked out a 0.1% gain, closing at 12,687 points while the CAC 40 put on 20 points to close at 4909 points.
In the US there was a marked uptick in sentiment with the Dow gaining 358 points or 1.3% as it closed at a six month high of 27,791 points.
This seventh consecutive day of gains appeared to be fuelled by Trump’s payroll tax cut, and given the index closed broadly in line with its all day high the positive sentiment seems to be sticking.
The index also benefited from a rebound in energy stocks with Chevron Corp and Exxon Mobil Corp gaining 3.4% and 2.5% respectively.
It was the NASDAQ’s turn to play second fiddle with most of the FAANGs dragging the index lower.
On the commodities front, gold pushed back up towards US$2060 per ounce in morning trading, but it finished the day at US$2037 per ounce, up 0.5%.
The Brent Crude Oil Continuous Contract rallied strongly throughout the day to hit a high of US$45.26 per barrel before settling just shy of US$45 per barrel.
After falling steeply on Friday, copper spiked on Monday regaining all of the previous day’s lost ground plus some, finishing just shy of US$2.97 per pound a level it hasn’t traded at since 2018.
Lead and zinc made nominal gains, while nickel retraced slightly to close at US$6.40 per pound.
After an intraday spike, the Australian dollar retraced to close at US$0.715.
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.