US markets surge on stimulus comments, ASX futures trending upwards
Published 08-OCT-2020 10:08 A.M.
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2 minute read
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Investors gave the budget a tick of approval on Wednesday with the S&P/ASX 200 index (XJO) increasing 74 points to close at 6036 points, its best close since the start of September.
This was despite negative leads from the US which saw futures markets yesterday pointing to a challenging day for our market.
With the budget putting cash in the hands of consumers and businesses alike, it wasn’t surprising to see the S&P/ASX 200 Consumer Discretionary Index (XDJ) performed strongly, gaining 51 points or nearly 2%.
After markets in the US registered some extremely strong gains overnight, the ASX should maintain its forward momentum, and the ASX SPI200 futures index is up 24 points to 6044 points.
In the US the Dow, the S&P 500 and the NASDAQ all recorded gains of between 1.7% and 1.9% with the Dow leading the way as it rallied 530 points to close at 28,303 points.
Ironically, it was news regarding potential stimulus packages that triggered the market surge.
It was in the last session on Tuesday that the market plummeted as Trump said that he wasn’t interested in discussing stimulus measures until after the election, yet just hours after Wall Street closed he said that he was open to a number of separate fiscal stimulus measures, and this was enough to reboot the market last night.
Markets were mixed in Europe with little movement across the major indices as the FTSE 100 fell less than .01% to close at 5946 points.
In Germany, the DAX gained 22 points to close at 12,928 points, while in France the CAC 40 decreased 13 points to 4882 points, a decline of 0.3%.
On the commodities front, the Brent Crude Oil Continuous Contract dipped in the middle of the day but a late rally saw it close broadly in line with the previous day at about US$42.00 per barrel.
After pushing past US$1900 per ounce early in the session, gold retraced during the afternoon, and it is currently hovering in the vicinity of US$1890 per ounce.
The big news on the base metals front surrounded copper as it surged from US$2.93 per pound to hit the psychological US$3.00 per pound mark.
Elsewhere, nickel and zinc were fairly flat, while lead registered its second day of gains to close above the US$0.80 per pound mark.
The Australian dollar strengthened slightly, pushing up towards US$0.715 mark.
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