Global markets remain on edge as Dow plunges more than 100 points
While there were some mixed messages coming from overseas markets, the mood was generally negative, exacerbated by a 3.5% decline in the oil price and a circa 5% decline in index heavyweight IBM after it delivered below expectations quarterly sales.
The Dow fell nearly 0.6% to close at 20,404 points. Interestingly, the tech heavy NASDAQ index defied the trend to gained 0.2% as it closed at 5863 points. Biotechs played a significant hand in driving the index higher.
The FTSE 100 continued its decline, shedding another 33 points or 0.5% to close at 7114 points. It is now trading broadly in line with where it was at the start of 2017 with all of the bullish sentiment that saw it top the 7400 point mark turned on its head in the space of two sessions.
Elsewhere in Europe, the DAX and the Paris CAC 40 were up 0.1% and 0.3% respectively, closing at 12,016 points and 5003 points.
On the commodities front, it was oil in the spotlight for all the wrong reasons as inventory data came in higher than expected. The closing price of US$50.58 per barrel is close to levels it traded at in early April, prior to the spike which saw it breeze past the US$53 per barrel mark.
There was little movement in the gold price as it closed at US$1281 per ounce.
Base metals generally moved in a positive direction after the previous day’s sharp sell-off. Lead was the biggest casualty as base metals plunged, and it posted the best rebound overnight, gaining 3%.
The Australian dollar weakened slightly and is now fetching US$0.75.
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.
S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.