NASDAQ leads recovery in US, SPI Futures up 77 points

By Trevor Hoey. Published at Sep 10, 2020, in Market Wrap

As the Australian sharemarket took its lead from overseas trends, the S&P/ASX 200 index (XJO) plunged 129 points or 2.2% to close at 5879 points on Wednesday.

It should be a different story today with US markets staging a significant turnaround last night after three consecutive days of losses, and this is reflected in the ASX SPI200 futures index which is up 77 points to 5937 points.

Just as Microsoft and Apple have been behind the rebound in the US, a recovery from yesterday’s market rout in Australia is likely to be led by heavily sold down tech and communications stocks.

On the political front, President Trump was criticised for playing down the severity of the coronavirus even prior to the pandemic making inroads in the US, but in true Trump style he brushed that off as strategically sound because avoiding panic was in the country’s best interest.

It could be argued that the citizens of the US would have preferred some ‘’early warning panic’’ if being better prepared would have helped in stemming a death toll that is now approaching 200,000.

Overseas markets rally as one

Looking at the numbers, the NASDAQ led the way in the US with a gain of 293 points or 2.7% as it closed at 11,141 points.

The S&P 500 also rallied strongly, up 2% to 3399 points, while the Dow gained 440 points or 1.6% to close at 27,940 points.

European markets rebounded as Germany led the way with the DAX gaining more than 2% or 269 points to close at 13,237 points.

The CAC 40 was up 1.4% to 5043 points.

The FTSE 100 started strongly, closing in on 6000 points early in the session, and after a brief retracement the index rallied in the afternoon to close at 6012 points, up 82 points or 1.4%.

On the commodities front, the Brent Crude Oil Continuous Contract recovered from sub-US$40 per barrel levels to close at US$40.79 per barrel after briefly touching US$41.00 per barrel.

Gold pushed above US$1950 per ounce for the first time since the start of the month, closing at US$1955 per ounce.

The iron ore price was one of the few disappointments as it shed 2% to close at US$126.50 per tonne.

There was little movement in base metal prices, but copper put in the best performance as it finished just shy of the recent long-term high of US$3.07 per pound after retracing to US$3.03 per pound on Tuesday.

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