ASX Futures down 30 points as overseas and domestic news takes its toll

By Trevor Hoey. Published at Jul 8, 2020, in Market Wrap

It was a rollercoaster ride for the S&P/ASX 200 index (XJO) on Tuesday as it started strongly before dipping around midday, rallying mid-afternoon and then falling some 50 points in the last hour of trading.

However, the final close of 6013 points was only down marginally on the previous day, and it could be argued that this was a good result given negative sentiment that emerged in the afternoon could mainly be attributed to coronavirus news.

There is now a second wave of economic turmoil to be factored into company forecasts and the broader Australian economy, and further downside wouldn’t surprise.

Adding further fuel to the fire on Wednesday will be the poor performance of overseas markets.

The ASX SPI200 index is down 30 points to 5959 points.

24 hours

Asian markets gave up some of the previous day’s gains yesterday with the Hang Seng hardest hit as it fell 1.4% or 363 points to close at 25,975 points.

The Nikkei 225 shed 100 points or 0.4%, closing at 22,614 points.

The Shanghai Composite bucked the trend, adding to the previous day’s strong gains by another 0.4% to close at 3345 points.

The FTSE 100 started the day in negative territory and continued the downhill slide in afternoon trading, closing at 6190 points, down 1.5%.

Negative sentiment also prevailed in mainland European markets with the DAX down nearly 1% or 116 points to 12,617 points.

The CAC 40 came off 0.7% or 38 points, closing at 5043 points.

Moving to the US, the Dow was the hardest hit index, sliding 1.5% or nearly 400 points to close at 25,890 points.

The S&P 500 was down 1.1% to 3145 points.

Even the NASDAQ couldn’t save the day as it fell 0.9% or 90 points to close at 10,343 points.

It is worth noting though that earlier in the session the index made a new all-time high of 10,519 points.

Many of the negative signs appear to be re-emerging with the CBOE Volatility Index increasing from about 27.5 points to 29.5 points.

There was a flock to gold as it spiked from about US$1785 per ounce to close near its high of US$1811 per ounce.

After pushing up towards US$0.70, the Australian dollar is starting to show some weakness.

This could well be linked to the re-emergence of COVID concerns, suggesting there could be further downside to come.

This would benefit Australian mining companies - based on the current gold price and an Australian dollar of US$0.69 the prevailing Australian dollar gold price is about $2620 per ounce, representing a margin of around $1300 per ounce relative to average production costs of $1300 per ounce.

It was a fairly flat performance for the Brent Crude Oil Continuous Contract as it finished the day at US$43 per barrel.

The iron ore price continued to track north, gaining a hefty 1.7% to US$103 per tonne.

Base metals took a breather after some strong gains in recent days.

However, lead is one to watch as it broke through the US$0.81 per pound mark to hit a near four-month high.

View Our Investment Portfolios

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 is Australia’s leading small cap publication

Founded seven years ago, 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. 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. 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!