ASX futures suggest a recovery after three days of losses

By Trevor Hoey. Published at Jun 16, 2020, in Market Wrap

The performance of global equities markets over the last 24 hours has demonstrated the volatility and unpredictability of the current situation which is still being influenced by economic factors and COVID-19 fears.

Regarding the latter, Asian markets plunged in response to news of a resurgence in coronavirus cases in Beijing.

Australian markets were trading during this period, and the negative sentiment rubbed off with the S&P/ASX 200 index (XJO) plunging 2.2% or 128 points to close at 5720 points on Monday.

This was the third consecutive day of losses which has seen the index fall by 426 points.

Negative sentiment also surrounded UK and European markets.

However, Wall Street was the surprise packet — after the Dow futures index (YM00) slid substantially during Asia-Pacific trading hours, it was a different story when markets opened in the US with the Dow finishing up 0.6%.

Given this backdrop, it is anyone’s guess where we’re headed today, but the ASX SPI200 futures index is pointing to a decidedly positive day of trading, up 141 points to 5876 points.

24 hours

As mentioned, Asian markets led the decline after China announced that there had been new infections in Beijing, prompting it to instigate precautions to prevent spreading.

In Japan, the Nikkei 225 was the hardest hit, falling 774 points or 3.5% to close at 21,531 points.

The Hang Seng plunged 524 points or 2.2% to 23,777 points.

The Shanghai Composite demonstrated more stability, coming off 1% to close at 2890 points.

In the UK, the FTSE 100 fell nearly 0.7% or 40 points to close at 6064 points.

The mood was similar in mainland Europe with the DAX and the CAC 40 off 0.3% and 0.5% respectively.

However, it was Wall Street that turned the tide with the Dow’s upward trajectory never faltering as it increased 157 points to close at 25,763 points.

The S&P 500 finished up 0.8% or 25 points, closing at 3066 points.

The NASDAQ appears to have regained its mojo, substantially outperforming the other indices, gaining 137 points or 1.4% to close at 9726 points and now sitting less than 100 points shy of its pre-coronavirus record high.

Amid this recovery, the CBOE Volatility Index plummeted from 44 points to 34 points.

There was a late surge in the Brent Crude Oil Continuous Contract as it increased from about US$37.60 per barrel to nearly US$40 per barrel.

While there was weakness in the gold price early in the day, an afternoon rally saw it finish broadly in line with the previous day’s close at approximately US$1730 per ounce.

The iron ore price retraced slightly to around US$103 per tonne.

Base metals were mixed with copper and lead trending lower while nickel built on the previous day’s gains to finish at US$5.78 per pound.

Zinc consolidated just above the US$0.90 per pound mark, sitting within striking distance of a four month high should it be able to climb another 2%.

Having traded in a broad range between US$0.68 and US$0.70 over the last five days, the Australian dollar is now sitting at the upper end of that band, and an increase of less than 1% would push it through the US$0.70 mark.

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