Futures flat ahead of statements by Fed and Bank of England
Published 14-SEP-2020 09:32 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
In a week marked by extreme rallies and sharp declines, the S&P/ASX 200 finished 67 points lower at 5859 points.
While overseas markets experienced extreme volatility during the week, a factor that generally had a negative impact on our market, there were mixed leads on Friday.
Consequently, today’s open is likely to be more about the week ahead rather than the week that was, and on this note fiscal statements by the Fed in the US and the Bank of England in the UK could have a significant impact on the market.
This level of uncertainty is borne out in the ASX SPI200 Futures index which is up just 4 points to 5852 points.
Dow up, NASDAQ down
The performance of US markets highlighted prevailing uncertainty with the Dow finishing up 131 points or 0.5% at 27,665 points.
In contrast the NASDAQ shed 0.6% or 66 points, closing at 10,853 points, more than 10% lower than the all-time high of 12,074 points that it struck early in December.
The S&P 500 was more balanced, gaining just two points to close at 3341 points.
There were plenty of investors sitting on the fence in Europe with the DAX off just six points as it closed at 13,202 points, while the CAC 40 gained 10 points or 0.2%, closing at 5034 points.
Despite oil and gas stocks being knocked around and the re-emergence of Brexit turbulence, the FTSE 100 staged a late session surge to close at 6032 points, up 0.5%.
It has been a rough week for oil with the Brent Crude Oil Continuous Contract falling in excess of 5% from more than US$42 a barrel on Monday to close at US$39.83 per barrel.
There was little movement across most other commodities with the gold price finishing flat on a week-on-week basis as it hovers just shy of US$1950 per ounce.
Iron ore was one of the few commodities to make a meaningful move at the end of the week, gaining 1.8% to close at US$128.40 per tonne.
There was little variation in base metals prices on Friday, aside from zinc which rallied 2.7% to close at US$1.10 per pound.
However, its closing price represents a retracement of about 3.5% after a strong 6 month surge that saw it peak at US$1.15 per pound.
There was little movement in the Australian dollar on a week-on-week basis as it finished just shy of US$0.73.
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.