Overseas markets down, gold price plummets, ASX futures down 55 points

Published 14-OCT-2020 10:44 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 had a particularly strong run last week and it came out of the blocks strongly in the first two days of trading this week, but the winning streak appears to have come to an end with equities markets falling significantly across Europe and the US.

There has also been weakness in key metals which could weigh on the market, and with the ASX SPI200 futures index down 55 points we could be in for a torrid day.

Reflecting briefly though on the last week or so, such has been the strength of the market’s performance that it closed at a seven month high after gaining 64 points to close at 6196 points.

One of the old market darlings was back in favour with Telstra gaining about 4% to close at $2.89 as it rebounded from a 12 month low of $2.76, not far off its long-term low of about $2.50.

Buy now-pay later stocks remained in favour with Afterpay (ASX:APT) increasing from $92.00 to $92.46, while emerging player Laybuy Group Holdings (ASX:LBY) gained 5% to close at $1.75.

Looking at overseas markets, negative sentiment started in the European region with the FTSE 100 shedding 0.5% to close at 5970 points.

Mainland Europe fared worse with the DAX particularly hard hit as it came off 120 points to 13,018 points.

France followed suit, falling 31 points to 4947 points.

In the US, the Dow opened lower and continued to fall, closing at 28,009 points, representing a decline of 0.5%.

Disappointing COVID news and a lack of progress with stimulus talks weighed on the market, and this had an impact on travel stocks as well as the broader financial sector with JP Morgan Chase, Goldman Sachs Group and American Express all down by about 1.5%.

The NASDAQ was only down slightly, coming off 12 points to close at 11,864 points with Microsoft being one of the better performers.

Gold began its plunge in early morning trading, falling from about US$1930 per ounce to hit a low of US$1889 per ounce before recovering to about US$1895 per ounce.

Iron ore was also hit hard, falling 2.5% to US$121 per tonne.

Oil was one of the few bright spots as the Brent Crude Oil Continuous Contract increased from less than US$41 per barrel to US$42.45 per barrel.

Nickel was the only base metal to gain ground, while there were slight falls across copper, lead and zinc.

The Australian dollar tapered off slightly and it is now fetching US$0.716



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