World stocks rise, ASX to follow
Stocks across the globe rose for a fourth straight day on Thursday after US payrolls grew by a whopping 4.8 million in June. Investors also flocked to the safe-haven dollar and gold remained buoyant. Authorities, however, remain concerned about surging COVID-19 cases in many US states.
ASX SPI Futures were trading 35 points higher at 8am ahead of trade in Sydney, suggesting the ASX will likely cap off the strong week with another day in the black.
The Australian share market followed international stocks higher this week as virtually all sectors lifted in unison. On Thursday, the ASX 200 traded 1.66% higher to close at 6,032.7 points as Australian investors pushed prices sharply up amid general optimism around the prospect of a v-shaped economic recovery.
European stocks jump, US prepares for rising COVID-19 cases
Several US states, along with some other parts of the world, are reversing or pausing reopenings to tackle a recent surge in infections, leaving analysts worried about another sell-off in financial markets if the damage mounts. While the virus is a lot more contained in Australia (compared to the US), a hotel debacle earlier this week led to a second surge of COVID-19 cases in Melbourne.
Regardless, investors remain confident that world stocks should be marching towards all-time highs. For now, it is full steam ahead for the “everything rally” as high risk as well as safe haven assets rally at the same time.
The Dow Jones Industrial Average rose 92.39 points, or 0.36%, to 25,827.36, the S&P 500 gained 14.15 points, or 0.45%, to 3,130.01 and the Nasdaq Composite added 53.00 points, or 0.52%, to 10,207.63.
The pan-European STOXX 600 index rose 1.97% and MSCI’s gauge of stocks across the globe gained 0.92%. Emerging market stocks rose 2.24%.
Earlier that day, Japan’s Nikkei rose 0.11%, underperforming the Asia Pacific region. The Shanghai Composite surged 2.13%.
On Thursday, oil futures prices were lifted by the US employment numbers, but gains were somewhat limited. Investors may be cautious about the prospect of oil prices as US coronavirus infections could obviously weaken economic activity in coming weeks.
US crude oil rose 1.26% to $40.32 per barrel and Brent was at $42.79, up 1.81% on the day as at 8am (AEDT).
Where to invest $1,000 right now
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
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.
