Gold plunges, US markets erratic, but futures slightly in the black

Published 12-AUG-2020 10:10 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

Nearly every sector finished in positive territory on Tuesday as the S&P/ASX 200 index (XJO) chalked up another day of gains, increasing 29 points or 0.5% to close at 6139 points.

This followed a stellar start to the week on Monday, and with the ASX SPI200 index up nine points to 6103 points there is the prospect of further gains on Wednesday.

While overseas equities markets were generally buoyant there was weakness in a number of commodities, most notably gold which plunged more than 5% to hit a low of US$1911 per ounce.

This is likely to result in major gold stocks placing a drag on the broader index, nullifying the prospects of another positive day.

24 hours

Despite grim news on the commodities front, there were some strong performances across major indices with the Asia-Pacific region leading the way.

In Hong Kong, the Hang Seng soared 513 points or 2.1% to close at 24,890 points.

The mood was also positive in Japan with the Nikkei 225 up 420 points or 1.9% to 22,750 points.

The Shanghai Composite bucked the trend, coming off 39 points to close at 3340 points.

Sentiment was extremely positive in Europe with the FTSE 100 surging 1.7% or 103 points to 6154 points.

Mainland European markets followed suit with the DAX and the CAC 40 increasing 2% and 2.4% to close at 12,946 points and 5027 points respectively.

The Dow looked set to maintain the positive trend until the last hour of trading when it plunged more than 200 points to close down 104 points at 27,686 points.

It was a similar story with the NASDAQ as the index experienced most of its decline in afternoon trading, falling from nearly 11,000 points to close at 10,782 points, down 1.7%.

The declines were broadly put down to profit-taking, but it was generally tech stocks that negatively impacted both indices.

Apple Inc (-3%), Microsoft Corp (-2.3%) and Intel Corp. (-2.1%) were some of the main casualties.

The other negative news on the commodities front related to oil with the Brent Crude Oil Continuous Contract falling from about US$45.50 per barrel to US$44.50 per barrel.

Iron ore was the pick of the metals, gaining 1.6% to break through US$120 per tonne.

Lead was the pick of the base metals as it pushed past the US$0.88 per pound mark for the first time since January.



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