ASX expected to edge higher, despite mixed leads from overseas markets

By Trevor Hoey. Published at May 5, 2020, in Market Wrap

The S&P/ASX 200 (XJO) had a rocky ride on Monday, continuing its downward trend from Friday’s fallout in morning trading before staging a comeback to finish up 74 points or 1.4% to 5319 points.

We mentioned yesterday that building approvals for March would be released, and that this information could impact companies that provide services to the construction sector.

While new housing approvals fell 4%, this was better than expected.

However, a number of stocks exposed to the building industry took a hit, arguably because investors anticipate that March data is the thin edge of the wedge with things set to worsen in the coming months.

There were mixed leads from overseas with the FTSE 100 down slightly, while sharp falls were recorded in Germany and France.

The US was also a mixed bag with the Dow just edging into positive territory in the last hour, while the NASDAQ posted a 105 point gain.

The SPI200 indicates the ASX could see another positive day, up 17 points to 5335 points.

24 hours

Looking across the time zones, Australia fared much better than Asian markets where the Hang Seng was hit hard, tumbling 1030 points or 4.2% to close at 23,613 points.

The Nikkei 225 shed 2.8% or 574 points, closing at 19,619 points.

The Shanghai Composite bucked the trend, increasing 1.3% to 2860 points.

The UK market opened sharply lower with the FTSE 100 slumping to about 5700 points before finishing the day at 5754 points, down 0.2%.

However, the real carnage was in mainland Europe with the CAC 40 plunging 194 points or 4.2% to close at 4378 points.

The DAX didn’t fare much better, shedding nearly 400 points or 3.6% to close at 10,467 points.

While the Dow spent most of the day in negative territory, hitting a low of 23,361 points, a late rally saw it close at 23,750 points, a gain of 0.1%.

The S&P 500 was up 0.4% to 2842 points.

However, the NASDAQ was the star performer, led higher by strong performances across the tech sector as it gained 105 points or 1.2% to close at 8710 points.

As US markets staged their late rally the CBOE Volatility Index started its decline, finishing down 3.3% at 36 points.

On the commodities front, Brent Crude rallied 3.1% to US$27.26 per barrel driving strong gains in the likes of ExxonMobil and Chevron.

There was little movement in the gold price as it continued to fluctuate between about US$1700 per ounce and US$1725 per ounce.

The Australian dollar is fetching just over US$0.64.

The RBA will be releasing its monetary policy decision at 2:30 PM today with analysts generally of the view that the cash rate will remain unchanged.

However, the rhetoric accompanying the RBA’s statement will be closely examined to gain an idea of what may play out in the coming months.

This being the case, there could be some volatility in the Australian dollar.

S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X