ASX Futures up 38 points following strong gains in Europe and the US

By Trevor Hoey. Published at Sep 29, 2020, in Market Wrap

The S&P/ASX 200 index (XJO) slid 13 points to 5952 points on Monday, dragged lower by the big banks and constituents of the Consumer Staples index such as Woolworths (ASX:WOW) which has given up 2% in less than a week.

It was only a strong performance by the tech sector that limited the decline to modest levels.

Given the overnight surge in the NASDAQ, tech stocks could once again be in the spotlight today.

The ASX SPI200 index is up 38 points to 5932 points, suggesting we could see a significant bounce.

However, there were also strong performances from the other US indices, and especially, the UK and European region where the DAX gained a massive 402 points or 3.2% to close at 12,870 points.

Until last week, the DAX has slowly but steadily being shaking off the coronavirus blues, getting within a few hundred points of its early 2020 highs.

After giving up more than 600 points last week, last night’s gain has gone a long way to erasing those losses.

It was a similar story in France with the CAC 40 gaining 2.4% to close at 4843 points.

In the UK, the FTSE 100 rallied 1.5% or 85 points, closing at 5927 points.

Back to the US, it wasn’t just the NASDAQ that was in good form, both the Dow and the S&P 500 gained more than 1.5% with the former surging 410 points to close at 27,584 points.

The S&P 500 gained 53 points as it closed at 3351 points.

Gold rebounds, AUD supportive of Australian-based metal producers

Looking across the commodities, gold recovered some of its recent losses to close at US$1882 per ounce, and it was still on the up in aftermarket trading, hitting US$1888 per ounce.

As we highlighted yesterday, the decline in the Australian dollar against the US dollar absorbed around 50% of the decline in the gold price over the last week, and investors have latched onto this theme over the last two trading days with the S&P/ASX All Ordinaries Gold Index (XGD) surging 350 points or more than 4% despite a significant fall in the US dollar gold price.

This trend should continue despite a slight strengthening in the Australian dollar overnight as it is still hovering below US$0.71, having shed about 3% in the last fortnight.

Iron ore stocks could also receive support today following a moderate rebound to US$116 per tonne.

There was also a significant kick in the oil price with the Brent Crude Oil Continuous Contract surging from about US$42 per barrel in morning trading to touch on US$43 per barrel as markets drew to a close.

Base metals were mixed with copper coming off slightly to close just below US$2.98 per pound after recording its fifth consecutive day of declines.

Nickel was up slightly to US$6.53 per pound.

There was little movement in the lead price, while zinc was the standout performer, gaining about 1.8% to US$1.09 per pound.

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