Overseas markets mixed, commodities taper, uptick in SPI futures
Published 10-AUG-2020 10:24 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
Strength across all major commodities including oil, gold, iron ore and base metals, meant there was no other way but up for our sharemarket last week.
Generally positive sentiment in overseas markets also provided momentum.
The weekly gain of 77 points represented an increase of 1.3%, despite a retracement on Friday, which could be attributed to COVID concerns.
The key overseas markets in Europe and the US that we look to for a lead lacked direction on Friday, suggesting our market will run its own race.
The ASX SPI200 futures suggest we will see a positive start to the week, up 42 points to 6014 points.
Major markets in the Asia-Pacific region trended downwards on Friday, and perhaps Australian investors were swayed by that trend.
There was a marked decline in Hong Kong with the Hang Seng falling nearly 400 points or 1.6% to 24,531 points.
The Shanghai Composite shed 1% to close at 3354 points.
The Nikkei 225 came off 0.4%, closing at 22,330 points.
There was little movement in the FTSE 100 as it gained five points to close at 6032 points.
It was a similar story in Europe with the Stoxx 600 flat and the CAC 40 up less than 0.1% as it closed at 4889 points.
The DAX was the only market to show some clear direction gaining nearly 0.7% or 83 points to close at 12,674 points.
The broader lacklustre mood flowed over to the with US the Dow up less than 0.2% to 27,433 points and the S&P 500 adding two points to 3351 points.
After posting strong gains throughout the week, the NASDAQ fell nearly 100 points to close at 11,010 points.
The Brent Crude Oil Continuous Contract finished up on a week on week basis, but gave up some of the gains that saw it edge above US$46 per barrel for the first time since March.
The gold price steadied at the end of the week after looking like it may make another milestone in hitting the US$2100 per ounce mark.
However, after falling just shy of that level it closed at US$2046 per ounce.
After most base metals gained significant ground throughout the week, there was a notable retracement on Friday with copper being the main casualty as it fell from US$2.94 per pound to US$2.86 per pound.
After rallying strongly for most of the week the Australian dollar retraced on Friday from levels of around US$0.724 to US$0.715.
Important domestic data will emerge mid-week with the release of consumer confidence numbers and the unemployment rate.
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.