Overseas markets up, good gains in commodities, but futures flat
Published 12-OCT-2020 11:07 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
The S&P/ASX 200 index (XJO) finished the week at 6102 points, representing a gain of more than 5%, its best performance in about six months.
With overseas markets finishing the week off strongly this positive momentum could continue on Monday, but futures markets tend to suggest that any potential upside is already factored in following last week’s rally.
But further positive sentiment should stem from strength across most commodities, including oil, gold, iron ore and base metals, suggesting our market could continue its run.
However, the ASX SPI200 index is currently pointing to a fairly flat start, down 5 points to 6091 points.
The UK and Europe set the tone on Friday with the FTSE 100 gaining 0.6% or 38 points to close at 6016 points.
In mainland Europe, France led the way with the CAC 40 gaining 0.7%, pushing up 35 points to 4947 points.
The DAX was relatively flat, up nine points to 13,051 points.
There were across-the-board gains in the US with the NASDAQ leading the way once again as it gained 1.4% or 159 points to close at 11,579 points.
This is its best close since retracing from an all-time record close of 12,056 points on September 2.
The S&P 500 gained 0.9% to close at 3477 points, while the Dow rallied 161 points after being up by about 440 points at one stage.
Gold continued its end of the week resurgence, closing at US$1936 per ounce, up more than US$50 per ounce from a low struck earlier in the week.
While the Brent Crude Oil Continuous Contract tapered off on Friday, its close of US$42.82 per barrel represented a strong week-on-week gain after starting the week below US$40 per barrel.
There were across-the-board gains in base metals with copper consolidating above US$3.00 per pound.
However, nickel was a standout performer, increasing from US$6.65 per pound to US$6.85 per pound, a gain of more than 3%.
Zinc registered its fourth consecutive day of gains, having put on nearly 4% to finish at US$1.09 per pound.
Lead gained about 1% to close above US$0.81 per pound.
This strong performances on the base metals front could see diversified mining group South 32 (ASX: S32) continue its strong performance after recording five consecutive days of gains last week, driving its share price 7% higher in October.
The Australian dollar started a strong run on Tuesday from about US$0.71 to push above US$0.72 on Friday.
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.