Futures down 92 points as coronavirus spooks overseas markets
Published 25-JUN-2020 09:12 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
While positive economic signs are emerging, the ASX has become increasingly responsive to negative coronavirus related news, both at home and overseas.
These were the two main factors at play in an up-and-down day on Wednesday as the S&P/ASX 200 index (XJO) gained 11 points to close at 5966 points.
The situation has become much more critical overseas with the rapid rise in coronavirus cases having a marked impact on US markets with the Dow and the NASDAQ plunging 2.7% and 2.2% respectively.
This is likely to be the key driver today and the futures markets are pointing in that direction with the ASX SPI200 futures index down 92 points to 5837 points.
24 hours
Other markets in the Asia-Pacific also traded erratically yesterday without any significant movements.
The Nikkei 225 was relatively flat, closing at 22,534 points.
The Hang Seng shed 125 points or 0.5% to close at 24,781 points.
In contrast, the Shanghai Composite made a slight gain of 9 points or 0.3%, closing at 2979 points.
It was when European markets opened that the change in investor sentiment became most obvious as the FTSE 100 plunged nearly 200 points or 3.1% to close at 6123 points.
The DAX was hit even harder as it fell 3.4% to close at 12,093 points, erasing most of the gains that have been made since the start of the month.
The CAC 40 shed 146 points or 2.9% to close at 4871 points.
The Dow is now back to late May levels, closing at 25,445 points, while the NASDAQ fell through the 10,000 point mark, closing at 9909 points.
There was a sharp spike in the CBOE Volatility Index as it surged from about 31 points to hit a high of 37 points.
Surprisingly, gold wasn’t a winner as negative sentiment set in, but it should be noted that at around US$1770 per ounce, it is close to the recent record high of $1788 per ounce.
The oil price took a hit as soon as Wall Street opened with the Brent Crude Oil Continuous Contract falling from US$43 per barrel to a low of US$40 per barrel.
Amidst this volatility, iron ore was one of the few shining lights as it gained 2.7% to US$103.
There was little movement in base metal prices with copper consolidating around the US$2.66 per pound mark.
The Australian dollar is fetching nearly US$0.69.
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.