Next Investors logo grey

ASX futures drop 20 points as Wall Street fades

Published 29-MAY-2020 09:31 A.M.


1 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

US finance company MSCI Inc's (NYSE: MSCI) gauge of world stocks lifted overnight, despite a late sell-off on Wall Street as investors decided to take risk off the table ahead of a news conference by US President Donald Trump today regarding China.

While US markets traded higher for most of the session, a reversal of sentiment was evident amid the ongoing trade dispute between China and the US. The Volatility Index known as VIX, spiked in the final hour of trading by 3.5%.

MSCI’s gauge of stocks across the globe rose 0.46%. The Dow Jones Industrial Average fell 147.63 points, or 0.58%, to 25,400.64.

The S&P 500 lost 6.4 points, or 0.21%, to 3,029.73 while the Nasdaq Composite dropped 43.37 points, or 0.46%, to 9,368.99.

Early gains in healthcare and technology stocks were overtaken by falling bank and consumer discretionary shares.

On the other side of the Atlantic, the pan-regional STOXX 600 index rose 1.64% on the European Union’s plan to provide coronavirus-hit economies with a 750-billion-euro recovery fund.

The euro lifted 0.6% against the US dollar to $1.108.

The overnight action puts the ASX on track for a 20 point drop at 10 am in Sydney as Australian futures declined along with US stocks early in the morning.

The Australian dollar traded at 66 US cents.

As we are looking at commodities, oil futures rose despite earlier losses, as investors bet on rising gasoline demand despite a big surprise build in crude inventories.

Gold pared earlier gains of 1% as rising stock markets dulled its safe-haven appeal, but a return of volatility could result in additional buying demand. Gold continues to trade at the highest level since 2012.

In economic news, Australian investors eye private sector credit for April, published by the Reserve Bank of Australia this morning.

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.