Europe up, US down, gold plunges, AUD tumbles, ASX futures in the red
Published 24-SEP-2020 09:37 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 S&P/ASX 200 index (XJO) soared 140 points on Wednesday to close at 5924 points, one of its best one-day gains in 2020.
While all sectors finished in the black, healthcare and consumer discretionary stocks were very much in favour, rallying more than 3%.
The banks staged a recovery with the financials index up 2.2%.
However, it looks like being a different story today with the ASX SPI200 futures index down 55 points to 5850 points, reflecting extreme volatility in US markets.
The decline in the US market appeared to stem from Fed Reserve commentary regarding the ongoing need for fiscal stimulus as coronavirus continues to undermine the economy.
There were across-the-board losses, but Tesla was particularly hard hit plunging approximately 10% from the previous day’s close of about US$425 per share to close at US$380 per share.
Looking across the indices, the NASDAQ was hardest hit, plunging 300 points or 2.7% to close at 10,664 points.
The S&P 500 only fared slightly better, dropping 2.4% to 3236 points.
The Dow plunged 525 points or nearly 2% to close at 26,763 points.
These movements were in stark contrast to the mood in Europe where the FTSE 100 gained 70 points or 1.2% to close at 5900 points.
The markets were buoyed by news of employment support packages in the face of stricter coronavirus measures.
While mainland European markets weren’t as strong, the Stoxx 600 gained 0.5% to close at 360 points.
The Paris CAC 40 broadly mirrored this gain as it rallied 29 points to close at 4802 points, clawing back some of the lost ground from heavy selling on Monday and Tuesday.
The DAX climbed nearly 50 points to close at 12,643 points.
On the commodities front, there was a steep drop in iron ore as it retraced to less than US$114 per tonne.
Gold was also weak, plunging through the US$1900 per ounce barrier to close at US$1868 per ounce, representing a decline of more than US$40 per ounce.
There was little movement in the Brent Crude Oil Continuous Contract, and it appears to have stabilised in a range between US$41 per barrel and US$42 per barrel.
Base metals were hammered overnight with copper closing at US$3.02 per pound, down nearly 3% since recently breaking through the US$3.10 per pound mark.
Nickel recorded its fifth consecutive day of losses to close at US$6.51 per pound, taking it back to mid-August levels.
Zinc continued its downward trend to finish at US$1.09 per pound.
Lead was steady, sitting just below US$0.84 per pound, well shy of the six-month high of about US$0.90 per pound struck in August.
The Australian dollar has declined substantially this week as many analysts are forecasting fiscal stimulus measures, a development that traditionally weakens our currency.
It has now declined from more than US$0.73 at the start of the week to less than US$0.71.
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.