ASX futures flat, gold makes another record high, overseas markets mixed
Published 03-AUG-2020 09:23 A.M.
|
3 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
After a horror day on Friday when the S&P/ASX 200 index (XJO) fell 2% (123 points) to close at 5928 points, there are no clear indicators that point to a recovery on Monday.
On the domestic front, coronavirus is tightening its grip on Victoria with the declaration of a state of disaster and stage 4 restrictions in Melbourne having a marked detrimental impact on businesses.
With further cases being detected in Sydney, investors are more likely to be taking money off the table than looking to take advantage of rampant selling on Friday.
Overseas markets were mixed, suggesting little support from international dynamics.
The ASX SPI200 index is down one point to 5877 points, indicating we could be in for a subdued start to the week.
24 hours
Looking at other markets on Friday, Japan was hit harder than Australia with the Nikkei 225 plunging 2.8% or 629 points to close at 21,710 points, a level it hasn’t traded at since mid-June.
The Shanghai Composite bucked the trend gaining 0.7% or 23 points to close at 3310 points.
However, the Hang Seng didn’t escape the negative sentiment as it came off 115 points, closing at 24,595 points.
European markets were also particularly gloomy with the FTSE 100 dropping 92 points or 1.5% to close at 5897 points.
Germany wasn’t as dour with the DAX coming off 0.5% as it closed at 12,313 points.
The CAC 40 moved broadly in line with UK markets as it shed 69 points or 1.4% to close at 4783 points.
While negative sentiment prevailed in the US for most of the session, the trend changed in afternoon trading as the Dow put on 400 points in the last few hours to close up 114 points or 0.4% at 26,428 points.
Though the NASDAQ opened strongly, it didn’t take long to trend downwards before mirroring the Dow’s surge over the last two hours of trading as it gained approximately 200 points to close at 10,745 points, up 1.5% on the day.
Amid the mayhem and extreme uncertainty, gold continues to be the shining light, making another all-time high as it broke through US$2000 per ounce before closing at US$1985 per ounce.
Australian investors would have been watching our currency movements against the US dollar just as closely as this has a significant impact on revenue generated by Australian mines.
There was a substantial decline from more than US$0.72 to US$0.714, and this translates to an Australian dollar gold price of $2780 per ounce.
Elsewhere on the commodities front, the Brent Crude Oil Continuous Contract rallied late in the day, increasing from US$43 per barrel to close at US$43.52 per barrel.
Aside from copper and zinc there was little movement in base metals with the former continuing to trend downwards as it fell just below US$2.90 per pound after it looked like the red metal was poised to break through US$3.00 per pound a fortnight ago.
Zinc is the one to watch as it appears to have snuck under the radar, not just making a six-month high this week but going on to hit US$1.04 per pound.
In approximate terms, US$1.10 per pound is around the mid-point of where the metal has traded over the last five years, and a break above this level could be seen as significant, particularly given that it would be close to a 12 month high.
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.