Positive leads from overseas stock markets to drive ASX higher

Published 30-APR-2020 10:37 A.M.

|

2 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

The ASX looks set for another strong performance today after the S&P/ASX 200 increased 1.5% or 80 points on Wednesday to close at 5393 points.

Markets in Europe and the US gained substantial ground overnight, providing investors with plenty to be confident about as Thursday unfolds.

Of significance were comments made by Federal Reserve Chairman Jerome Powell who conceded that COVID-19 will weigh heavily on the US economy, but also that the Central Bank is ready to bolster the stimulus measures already in force in unprecedented fashion.

In contrast to his President, Powell’s rhetoric was realistic and compelling in saying that the Fed’s emergency credit facilities are “wide open” and “we can do more of that.”

There was no pretending ‘’everything is ok’’ and ‘’we’ll be open for business’’ type statements, and this appeared to resonate with Wall Street.

There was also good news on the corporate front with Microsoft outperforming analyst’s expectations, reporting fiscal third-quarter earnings of US$10.75 billion.

Tesla also surprised on the upside, prompting a 4% rally in its shares.

With good news all round, it is not surprising to see that the ASX SPI200 is up 108 points to 5468 points, indicating the ASX is in for a good day.

24 hours

Asian markets were the only ones that didn’t display the real zip experienced elsewhere.

The Hang Seng and the Shanghai Composite gained 0.3% and 0.4% to close at 24,643 points and 2822 points respectively.

The Nikkei was the only major index to finish in the red, but its decline was less than 0.1% as it dropped 12 points to close at 19,771 points.

Key European indices were all up more than 2% led higher by the FTSE 100 which gained 2.6% or 156 points to close at 6115 points, the first time that the index has closed above 6000 points since early March.

Once again, investors couldn’t get enough of Barclays as it surged another 8% after a strong performance on the previous trading day.

Europe followed suit with the DAX leading the way, posting a healthy gain of 2.9% with the index up 312 points to close at 11,107 points.

The CAC 40 gained 2.2%, closing at 4671 points.

The outstanding performance by Microsoft underpinned a 3.6% increase in the NASDAQ, pushing it up to 8914 points, its highest close since early March.

The Dow gained 2.2% or 532 points to close at 24,633 points, while the S&P 500 rallied 2.7% to close at 2939 points.

With global markets rallying in unison the CBOE Volatility Index slumped 7% to 31.2 points, down from more than 40 points a week ago.

On the commodities front, oil was the talk of the town with the Brent Crude Oil Continuous Contract surpassing the US$24 per barrel mark, a gain of about 10%.

Gold was also back in favour, up 0.8% to US$1727 per ounce.

After breaking through the US$0.65 mark, the Australian dollar is now on its way towards US$0.66, but positive commentary released last night in the US may keep a lid on its progress.



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.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X