Trump tricks traders, but futures suggest ASX will turnaround on Monday

By Trevor Hoey. Published at Oct 5, 2020, in Market Wrap

The Trump news that triggered a substantial sell-off on the ASX on Friday, had a much more nominal impact on overseas markets on Friday night our time.

The S&P/ASX 200 index (XJO) shed 81 points on the day on Friday, but it was only in the last hour or so that the decline really accelerated with the index falling by about 62 points in that period.

On a week-on-week basis the close of 5792 points represented a decline of 173 points or nearly 3%, and it is worth noting that a break below 5784 points would have taken the XJO back to its worst close since mid-June.

If markets are right we should avoid further downside on Monday with the ASX SPI200 index up more than 1% or 67 points to 5853 points.

European markets were particularly resilient with the FTSE 100 gaining 22 points or 0.4% to close at 5902 points.

In France, the CAC 40 was relatively flat, while in Germany the DAX only gave up 0.3%, closing at 12,689 points.

While US markets felt the pinch more, it wasn’t a shockwave response with the Dow falling 0.5% to close at 27,682 points.

The NASDAQ was the main casualty, as it shed 251 points or 2.2% to close at 11,075 points.

To put this in perspective though, the index had rallied from about 11,000 points to 11,300 points throughout the week, and it could be argued that this was a bit of money taken off the table in the form of profit-taking.

Another key barometer of investor sentiment when there is a major event is the gold price.

There wasn’t a flock to gold – in fact, it finished slightly lower on the day at about US$1907 per ounce.

The last few days of the week weighed heavily on the oil price with the Brent Crude Oil Continuous Contract finishing at US$39.27 per barrel, down from US$43.00 per barrel on Monday.

In after-hours trading the commodity traded below the US$39.00 per barrel mark, a worrying sign as it hasn’t fallen below that level since June.

Elsewhere on the commodities front, copper reclaimed much of the lost ground from Thursday when it fell by more than 3% to US$2.90 per pound.

Nickel, zinc and lead all trended slightly lower.

View Our Investment Portfolios

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 is Australia’s leading small cap publication

Founded seven years ago, 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. 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. 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!