Next Investors logo grey

Mixed leads from overseas markets but SPI200 points to a good day

Published 29-APR-2020 10:18 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

The ASX lost its way on Tuesday after being up more than 50 points in morning trading.

It would appear that some negative sentiment emerged in the afternoon ahead of the release of CPI data today.

The S&P/ASX 200 (ASX:XJO) finished the session 8 points lower at 5313 points.

The SPI200 Index is pointing to a more positive performance today, up 20 points to 5325 points.

However, overseas markets were mixed, and the US ended the day poorly shedding approximately 100 points in the last 30 minutes.

Most of the big tech stocks report over the coming days, and there was already evidence of possible disappointments late yesterday when Alphabet Inc (US:GOOG) reported a significant slowdown in sales and lower profits than expected.

With heavy hitters such as Apple Inc, Microsoft Corp, Facebook and Amazon Inc to report over the coming two days, it is difficult to predict the direction of the US market.

24 hours

Looking across the various time zones, the Nikkei 225 performed just as erratically as the ASX, slumping from an early-stage high of 19,841 points to a low of 19,638 points before closing relatively flat at 19,771 points.

The Hang Seng rallied 1.2% to close at 24,575 points, but the Shanghai Composite gave up ground, falling 0.2% to 2810 points.

The UK was the best performing market overnight as the FTSE 100 gained nearly 2% or 111 points to close at 5958 points with the big banks being key drivers led by a 7% increase in Barclays plc.

Mainland Europe was also robust with the DAX and the CAC 40 up 1.3% and 1.4% to close at 10,795 points and 4569 points respectively.

The Dow seemed to take Europe’s positive lead as it was up about 300 points early in the session, but these gains were erased as it fell steeply in the last half hour, finishing just over 0.1% or 32 points lower to close at 24,101 points.

The S&P 500 shed 0.5% or 15 points, closing at 2863 points.

Indicative of the nervousness surrounding technology stocks, the NASDAQ slumped 1.4% or 122 points to close at 8,607 points.

The CBOE Volatility Index spiked early in the day from about 31 points to 35 points, before closing at 33.6 points.

On the commodities front, gold finished relatively flat at US$1724 per ounce.

Brent crude increased more than 2.6% to close above US$20 per barrel.

Iron ore continued its slide, falling 1.5% to US$82.20 per tonne.

All of the key base metals gained ground, but zinc was the standout performer, notching up its third consecutive day of increases to close at approximately US$0.87 per pound, up more than 3% in three days.

The Australian dollar gained ground against the US dollar, pushing up to US$0.65 towards the end of the session, a level it hasn’t traded at since early March.

This comes ahead of US first-quarter GDP data and pending home sales in March, suggesting that currency investors may be expecting some fairly dour news.



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.