Positive US jobs data files to offset the impact of plunging oil price
Published 09-MAR-2017 11:59 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
As new data indicated that crude supplies had once again climbed substantially, US markets went into freefall. The Dow generally traded sideways until the extent of the oil price decline became more pronounced, but then proceeded to fall from the previous day’s close of 20,924 points to a low of 20,836 points before recovering slightly to close at 20,855 points.
The NASDAQ gave up all of its early gains as well. After increasing from the previous day’s close of 5833 points to a high of 5861 points, the index finished at 5837 points.
Better than expected new jobs data in the US had a positive early impact on markets both in the US and Europe, but the news also reaffirmed the likelihood of a Fed rate hike, tempering gains in Europe.
The FTSE 100 fell 4 points to close at 7339 points.
There were also only nominal movements in mainland European markets with the DAX unchanged at 11,967 points and the Paris CAC 40 gaining five points to finish at 4960 points.
The big news on the commodities front was obviously oil as its decline extended throughout afternoon trading in the US to more than 5%, plummeting to an intraday low of US$50.05 per barrel.
Gold extended its losses for the week, falling 0.6% to US$1209 per ounce, a level it hasn’t traded at since the start of February. Only a week ago the precious metal was trading in the vicinity of US$1250 per ounce.
Negative sentiment rubbed off on the prices of most metals with iron ore falling nearly 3% to circa US$87 per tonne.
Base metals were mixed with nickel falling substantially from the previous day’s close of US$4.81 per pound to US$4.61 per pound, representing a steep decline of approximately 4%.
Copper was relatively flat while zinc and lead made slight ground to finish at US$1.22 per pound and US$1.02 per pound respectively.
The Australian dollar fell 0.7% to finish at US$0.753, indicating that it could be retracing to mid-January levels of circa US$0.75.
It should be noted that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
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.