US markets up despite debate debacle, iron ore surges, futures up

By Trevor Hoey. Published at Oct 1, 2020, in Market Wrap

Australian share market investors have had a rollercoaster ride in the three months to September 30, 2020, and the quarter finished in similar fashion as the S&P/ASX 200 index (JOA) plunged 136 points or 2.3% to close at 5816 points.

However, there have been some strong days during the September quarter as well, and to put yesterday’s decline into perspective, the index is only down 1.4% or 82 points on a quarter-on-quarter basis.

Index heavyweights such as CSL, Rio Tinto and BHP weighed heavily on the market and the S&P/ASX 200 Financials Index (XFJ) fell more than 100 points or 2.2%.

However, a strong lead from the US overnight could see a rebound today, and the ASX SPI200 futures index is pointing in that direction, up 11 points to 5813 points.

While the presidential debate was full of fire and brimstone, few market commentators saw it as influential in terms of impacting equities markets, and it certainly didn’t show either candidate up in a good light, resembling more of a schoolyard spat than an informed appeal to constituents.

Trump was true to himself with his vitriolic diatribe giving Biden little opportunity to get a word in.

On and off COVID relief bill creates up-and-down market

Overnight trading got off to a slow start with European markets finishing in the red.

The FTSE 100, the DAX and the CAC 40 were all down by about 0.5 cents.

US markets defied this negative sentiment, albeit opening a little on the soft side.

However, a mid-session surge saw the Dow up more than 550 points as Treasury commentary pointed to a possible relief bill.

While these comments were brought into question later in the day, positive data emerged in afternoon trading indicating a significant spike in pending home sales, and this was enough to bring the Dow home with a gain of 329 points, up 1.2%.

The S&P 500 gained 27 points or 0.8% to close at 3363 points.

Uncharacteristically, the NASDAQ played second fiddle to the other indices, only gaining 0.7% or 82 points as it finished at 11,167 points.

Iron ore leads the way on the metals front

The big mover in the commodities space was iron ore as it surged 5% to US$123 per tonne, reclaiming a significant proportion of the declines that have been experienced in late September.

It is worth noting that iron ore was trading just shy of US$100 per tonne at the end of the June quarter, indicating its current level implies a quarter-on-quarter gain of nearly 25%.

By comparison, gold is up about 8% on a quarter-on-quarter basis.

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!