Markets react nervously as uncertainty looms in the US and Europe

Published 08-JUN-2017 10:34 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

On the eve of the UK election and the release of important commentary on monetary policy by the European Central Bank (ECB), confidence in most global markets tended to weaken.

However, US markets still managed to finish in the black despite the fact potentially damaging testimony by former FBI Director James Comey could provide political instability.

The other factor in the mix was oil prices, but the sharp overnight fall appeared to impact European markets more so than the US.

Strong performances from some index heavyweights in the financial sector also helped to offset weakness in other sectors. Gains of more than 1% were delivered by American Express and JP Morgan Chase, and there was also solid support for Goldman Sachs Group.

After starting strongly and then drifting into negative territory midway through the session, the Dow rallied strongly late in the day to close up 0.2% at 21,173 points.

The NASDAQ traded in similar fashion, but its late surge saw it pass the 6300 point mark before closing at 6297 points, not far shy of its all-time high of 6310 points.

Despite the fact that polls indicate Theresa May is in good shape to be re-elected as Prime Minister, the UK market reacted nervously with the FTSE 100 falling 0.6% to close at 7478 points.

There was little movement in mainland European markets with the DAX coming off 0.1% to close at 12,672 points and the Paris CAC 40 relatively flat at 5265 points.

On the commodities front, oil was under the spotlight as it plunged 5% to US$45.78 per barrel, which now sees it threatening to break below the August 2016 lows of circa US$45 per barrel.

Gold’s traditional safe haven appeal wasn’t enough to keep it in positive territory as it came off 0.6% to close at US$1289 per ounce.

The iron ore price fell approximately 1% to close at US$55.43 per tonne.

Copper was the only base metal to gain ground, increasing marginally to US$2.53 per pound.

Nickel resumed its downward trend, falling circa 0.7% to US$3.96 per pound.

Zinc may have started to stabilise after recording steep declines over the last seven trading sessions, falling only marginally overnight to US$1.10 per pound.

Lead was relatively flat, closing at US$0.92 per pound.

The Australian dollar continued to strengthen, and it is sitting in the vicinity of US$0.755.

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.


Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free