US markets surge on stimulus comments, ASX futures trending upwards

By Trevor Hoey. Published at Oct 8, 2020, in Market Wrap

Investors gave the budget a tick of approval on Wednesday with the S&P/ASX 200 index (XJO) increasing 74 points to close at 6036 points, its best close since the start of September.

This was despite negative leads from the US which saw futures markets yesterday pointing to a challenging day for our market.

With the budget putting cash in the hands of consumers and businesses alike, it wasn’t surprising to see the S&P/ASX 200 Consumer Discretionary Index (XDJ) performed strongly, gaining 51 points or nearly 2%.

After markets in the US registered some extremely strong gains overnight, the ASX should maintain its forward momentum, and the ASX SPI200 futures index is up 24 points to 6044 points.

In the US the Dow, the S&P 500 and the NASDAQ all recorded gains of between 1.7% and 1.9% with the Dow leading the way as it rallied 530 points to close at 28,303 points.

Ironically, it was news regarding potential stimulus packages that triggered the market surge.

It was in the last session on Tuesday that the market plummeted as Trump said that he wasn’t interested in discussing stimulus measures until after the election, yet just hours after Wall Street closed he said that he was open to a number of separate fiscal stimulus measures, and this was enough to reboot the market last night.

Markets were mixed in Europe with little movement across the major indices as the FTSE 100 fell less than .01% to close at 5946 points.

In Germany, the DAX gained 22 points to close at 12,928 points, while in France the CAC 40 decreased 13 points to 4882 points, a decline of 0.3%.

On the commodities front, the Brent Crude Oil Continuous Contract dipped in the middle of the day but a late rally saw it close broadly in line with the previous day at about US$42.00 per barrel.

After pushing past US$1900 per ounce early in the session, gold retraced during the afternoon, and it is currently hovering in the vicinity of US$1890 per ounce.

The big news on the base metals front surrounded copper as it surged from US$2.93 per pound to hit the psychological US$3.00 per pound mark.

Elsewhere, nickel and zinc were fairly flat, while lead registered its second day of gains to close above the US$0.80 per pound mark.

The Australian dollar strengthened slightly, pushing up towards US$0.715 mark.

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