ASX tipped to open lower following negative sentiment in overseas markets
The S&P/ASX 200 index (XJO) fell 19 points or 0.3% on Friday, but on a week-on-week basis the index finished just in the black.
The big miners along with mid-tier gold stocks helped to offset significant falls across the financial sector as the big banks came under pressure.
The financials index finished down 1.8% on a week-on-week basis, and each of the big four banks fell in line with the index.
Given negative sentiment in overseas markets, it is likely that ASX stocks will come under pressure on Monday, and this is supported by the ASX SPI200 index which is down 36 points to 5836 points.
European markets were already in decline when Wall Street opened, and the FTSE 100 finished 42 points lower at 6007 points.
France was one of the biggest casualties among mainland European markets with the CAC 40 declining 61 points or 1.2% to close at 4978 points.
Losses were more measured in Germany with the DAX closing 0.7% lower at 13,116 points.
US markets started to trend lower from the opening bell, and while there was a steadying in declines in afternoon trading, the mood was decidedly negative.
The Dow fell 0.9% or 244 points to close at 27,657 points, while the S&P 500 declined 1.1% to 3319 points.
Even the NASDAQ couldn’t withstand the broader market trends, falling more than 1% or 117 points to close at 10,793 points.
This put paid to the index’s mid-week rally as it finished some 450 points shy of its five day high.
While the Brent Crude Oil Continuous Contract lost some ground on Friday, it still finished up more than 8% on a week on week basis, having increased from less than US$40 per barrel to close at US$43.15 per barrel.
Gold finished around the mid-point of its one-week trading range at US$1962 per ounce.
Iron ore increased more than 2% as it closed in on US$125 per tonne.
On the base metals front, copper finished the week strongly, pushing above US$3.10 per pound for the first time since mid-2018.
Zinc and lead were up slightly, while nickel fell substantially from US$6.81 per pound to US$6.70 per pound, now well short of the high of US$7.14 per pound that it struck at the start of the month.
The Australian dollar is fetching US$0.73.
Where to invest $1,000 right now
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
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.
