Weakness in global markets points to headwinds for Australian stocks
Published 12-MAY-2017 15:41 P.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
After being down more than 140 points early in the session, the Dow recovered to close 23 points lower at 20,919 points.
A number of the large IT companies finished in negative territory including Microsoft Corp (-1.2%) Intel Corp. (-0.9%) and IBM (-0.4%). Weakness amongst retail stocks also drove the index lower.
Health and biotech stocks placed a drag on the NASDAQ with it falling 0.2% to 6115 points.
Negative sentiment also prevailed in the UK and Europe. While the FTSE 100 finished broadly in line with the previous day’s close at 7386 points, it spent a good part of the session in negative territory.
The heat has come out of mainland European markets, which was to be expected given the DAX has been notching up record highs over the last two weeks and the Paris CAC 40 ran hard leading up to the election.
That DAX shed 0.4% to close at 12,711 points, while the Paris CAC 40 came off 0.3%, closing at 5383 points.
More positive sentiment prevailed in the commodities space with oil rallying another 1% to close at US$47.82 per barrel.
Gold increased 0.5%, closing at US$1225 per ounce.
Iron ore was relatively flat, closing just above US$60 per tonne.
Base metals were mixed, but the standout performer was nickel as it rallied more than 2% to close at US$4.21 per pound, its highest close since the start of May.
Copper gained nearly 1% to close at US$2.50 per pound.
Both zinc and lead fell marginally to the tune of about 0.5%, closing at US$1.17 per pound and US$0.99 per pound respectively.
The Australian dollar weakened further, closing at US$0.737.
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.