Gains across the markets
Published 06-NOV-2020 11:20 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
Chris Beauchamp, Chief Market Analyst at IG, discusses the US election and the UK economy.
“The gains continue to be seen in European markets, with the FTSE 100 up 20 points in mid-morning trading.
“Stock markets continue to take the US election in a positive frame of mind, and with the BoE throwing more QE into the fray, the second central bank to do so in a week, the outlook for stocks continues to brighten.
“Last week’s selloff looks more and more like pre-election jitters, a bout of nervousness that has been reversed even more swiftly than it appears.
“It is true that the US election is yet to be officially decided, but Biden seems likely to cross the 270 vote threshold in coming days, potentially rendering Trump’s legal challenges irrelevant, and with this bump in the road removed, stock markets can rally once more.
“The BoE’s outlook for the UK economy is understandably grim, prompting the move towards more QE, but as in the US the real boost will come from fiscal stimulus, and at least here there is some good news thanks to the chancellor’s decision to extend furlough.
“The costs of the virus continue to mount at an astonishing speed, but given the alternative markets have decided they are the lesser of two evils, hence the continued strength in risk appetite.
“Even supermarkets, the big winners of lockdown no. 1, are not immune from the current tough climate, as Sainsbury’s revealed this morning.
“For the share price, it looks like 210p is far enough in this current climate, given the expected pressure on consumer spending in the weeks and months ahead.
“Tesco has managed to avoid a bigger loss this morning however, perhaps a beneficiary of its broader reach and its greater value proposition that might boost its sales in months to come.”
Biden nears victory
According to eToro analyst Adam Vittese, “Stock markets globally gained yesterday as Democratic nominee Joe Biden neared victory in the US presidential election.
“On a monumental day that saw Biden gather the most votes of any Presidential candidate in history, US stock futures then extended those gains yesterday evening as more states turned blue.
“The big winners were technology giants and the healthcare sector, which may well end up with their dream scenario of a Biden White House and a Republican-controlled Senate.
“Without both houses, Biden’s ability to pass tax increases and increase regulation will be restricted, while tech firms are eyeing a smoother relationship with China (which is crucial both to supply chains and as a market for tech products). If the Democrats fail to win a Senate majority, Biden will be restricted in his ability to reform healthcare and increase regulation there.”
S&P: 500 +1.95%
FTSE 100: 0.39%
Asia Dow: 0.12%
Nikkei 225: 1.73%
S&P ASX 200: 0.70%
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.