Markets cautious ahead of potential turbulence on Thursday

By Trevor Hoey. Published at Jun 7, 2017, in Features

There was a sense of caution surrounding overseas trading last night with markets preparing themselves for potentially crucial events such as the UK election, the meeting of the ECB and the testimony by sacked FBI head James Comey.

While all major indices finished in negative territory most of the declines were nominal and didn’t appear to be supported by material leads regarding what is shaping up to be a highly volatile end to the week.

The Dow closed at 21,136 points, representing a decline of 0.2%. The NASDAQ fell 0.3% to 6275 points.

The FTSE 100 demonstrated the most stability, only coming off marginally to finish at 7524 points.

The highflying DAX finally took a breather as it shed 1% to close at 12,690 points. It is worth noting though that the index is still up 100 points on a week on week basis and little more than 100 points shy of its all-time high.

The Paris CAC 40 fell 0.7% to 5269 points.

On the commodities front there was renewed support for oil as it rallied 1.2% to close at US$48 per barrel.

Gold was the standout metal, gaining more than 1% as safe haven buying pushed it up to US$1296 per ounce, a level it hasn’t traded at since mid-April.

The iron ore price settled in the vicinity of US$56 per tonne after the recent sell-off.

Base metals all trended lower with lead being the hardest hit as it fell 1.5% to close just below US$0.93 per pound.

Zinc fell nearly 1% to US$1.10 per pound.

Nickel shed 0.5%, closing just below the US$4 per pound mark.

Copper was the most resilient, falling only marginally to US$2.53 per pound.

The Australian dollar made the US$0.75 mark early in trading and maintained that level through to the close.

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.

Publishers Notice

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.