Next Investors logo grey

Global instability drives markets lower

Published 24-APR-2017 10:46 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

While most global markets closed lower on Friday, the falls were not significant particularly relative to the volatility and uncertainty that prevails in a number of regions.

The outcome of the French elections remains very much in the balance, and terror attacks in that region have also had a destabilising impact.

Military tensions have escalated between North Korea and the Western world, and not surprisingly the CBOE Volatility Index (VIX) continues to hover in the vicinity of 15, up from a range between 11 and 12 for most of March.

The Dow fell 30 points or 0.15% to close at 20,547 points. The NASDAQ closed 0.1% lower at 5910 points.

Arguably, these declines could have been worse as the Dow hit a low of circa 20,500 points early in the session, but gained a boost from commentary from President Trump regarding tax reform.

In the UK the FTSE 100 was relatively unmoved on 7114 points. The DAX gained 0.2% to close at 12,048 points.

The Paris CAC 40 slumped to 0.4% to 5059 points, but the main focus will be on the response to the first round of elections which occurred over the weekend.

On the commodities front, gold seems to have found a level of support in the vicinity of US$1280 per ounce, and closed the week out at US$1286 per ounce.

Oil shed another 2% to slip below US$50 per barrel with some analysts indicating there is more downside to come as crude production increases.

Base metals mainly traded lower, although declines were relatively moderate. Copper was flat at circa US$2.53 per pound, and Nickel came off more than 1% to close at US$4.22 per pound.

Zinc closed off the week at US$1.16 per pound after falling 1.5% on Friday following some strong mid-week gains. Iron ore finally found some positive momentum to close at US$68.22 per tonne.

Meanwhile, the Australian dollar is fetching US$0.754.

This article is General Information and contains only some information about some elements of one or more financial products. It may contain; (1) broker projections and price targets that are only estimates and may not be met, (2) historical data in terms of earnings performance and/or share trading patterns that should not be used as the basis for an investment as they may or may not be replicated. Those considering engaging with any financial product mentioned in this article should always seek independent financial advice from a licensed financial advisor before making any financial decisions

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.