NASDAQ continues to rebound, Trump in trouble with WTO, futures up

By Trevor Hoey. Published at Sep 16, 2020, in Market Wrap

After a solid start on Tuesday the S&P/ASX 200 index (XJO) finished just below the previous day’s close at 5895 points.

A bounce in the gold price saw some support come from that sector, but this was more than offset by negative sentiment towards the energy sector and a slide in banking stocks as three of the big banks gave up more than 1% and the CBA finished 0.8% lower.

However, the outlook appears more positive today with strong leads from overseas markets and a significant recovery in the oil price likely to drive the market higher.

With the ASX SPI200 futures index up 48 points to 5933 points, we could be in for a solid day.

Looking across the markets, it was once again the NASDAQ that stood out as it gained 133 points or 1.2% to close at 11,190 points.

The Dow was relatively flat, but the S&P 500 gained 0.5% to close at 3401 points.

European markets were in sync with the US with the FTSE 100 surging nearly 80 points to 6105 points, a gain of 1.3%.

Mainland European markets were less buoyant, but the DAX added 24 points to close at 13,217 points and the CAC 40 finished 0.3% higher at 5067 points.

WTO goes to war with Trump

Things are heating up on the geopolitical front with the World Trade Organisation (WTO) weighing in on the feud between the US and China.

The WTO accused Trump of breaking international trade rules in relation to the tariffs imposed on Chinese exports in 2018.

The retort from the Trump corner was quick and pointed, saying that the WTO’s ruling demonstrated its ineffectiveness, in essence serving to support the need for Trump to continue to self-manage trading terms.

On the commodities front, after dipping early to less than US$39.50 per barrel the Brent Crude Oil Continuous Contract made a strong surge as it finished at US$40.53 per barrel, erasing the losses that have occurred over the last week.

Gold continued to hover just above US$1960 per ounce, while iron ore dipped 1.3% to US$128.50 per tonne.

Base metals were mixed with copper and lead slightly lower and nickel levelling out after two strong days of gains.

However, zinc continued its strong rally with three consecutive days of gains taking it from US$1.08 per pound last week to US$1.13 per pound, just shy of its recent 10 month high.

The Australian dollar strengthened slightly to finish just above US$0.73.

There will be some important economic data released in the coming days, including Australian unemployment figures and US housing starts and consumer confidence, with the latter arguably a better indication of how the US economy is holding up, as opposed to gyrations in equities markets.


Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


SEE THE PORTFOLIO

S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X