Global Fundamental Analysis 29/09/2020

Global Fundamental Analysis 29/09/2020, FP Markets

OPENING CALL: The Australian share market is to open higher.

U.S. stocks started the week off with strong gains. The yield on the 10-year Treasury was flat at 0.66%. The WSJ Dollar Index fell to 89.25. U.S. oil prices managed small gains. Gold prices benefited from the weakening dollar.

 

Overnight Summary

EACH MARKET IN FOCUS

Australian Market

Australia’s benchmark S&P/ASX 200 fell 0.2%, as travel stocks surged on news of progress in developing a travel bubble between New Zealand and some Australian states.

US Market

The Dow Jones Industrial Average rose more than 400 points, clawing back some lost ground after four consecutive weeks of declines, as investors piled into economically sensitive stocks including those of banks and energy companies.

The day’s gains were broad, with 27 of the 30 stocks in the blue-chip index rising, along with all 11 sectors of the S&P 500. The rally was a welcome relief for investors, who said last week’s selloff was overdone.

The Dow was up 1.5% as of the 4 p.m. close of trading in New York. The S&P 500 gained 1.6%, while the tech-heavy Nasdaq Composite climbed 1.9%, paring some of their earlier gains.

Commodities

Gold futures settled higher, with the dollar-denominated precious metal buoyed by weakness in the U.S. dollar after posting a loss last week.

December gold rose $20.60, or 0.9%about 1%, to settle at $1,886.90 an ounce.

Oil Futures

U.S. benchmark oil prices ended the session 0.9% higher at $40.60 a barrel, the highest closing price in more than a week as investors turned bullish amid rising hopes for a U.S. stimulus deal.

WTI crude prices also found support from a surge in energy stocks amid an announced merger plan between shale producers Devon Energy and WPX Energy.

Forex

Major currencies were mostly firmer against the US dollar in European and US trade. The Euro rose from lows near US$1.1622 to highs near US$1.1678 and was near US$1.1665 at the US close. The Aussie dollar rose from lows near US70.37 cents to highs near US70.75 cents and was near US70.70 cents at the US close. But the Japanese yen eased from 105.26 yen per US dollar to JPY105.64 and was near JPY105.50 at the US close.

European Markets

European share markets rose on Monday. The pan-European STOXX 600 index lifted 2.2% – its biggest percentage gain since midJune. Shares of HSBC surged 8.9% after its biggest shareholder Chinese insurer Ping An raised its stake. Spirits maker Diageo’s shares rose 6.1% after saying it had made a strong start to its fiscal year 2021. The German Dax index jumped 3.2%. The UK FTSE index lifted 1.5%. In London trade, shares of Rio Tinto (-1.2%) and BHP (-0.5%) both fell.

Asian Markets

China’s major stock benchmarks closed lower ahead of an eight-day National Day vacation beginning Thursday. The Shanghai Composite Index was off 0.1%, falling for the third straight session. The Shenzhen Composite Index and the ChiNext Price Index shed 0.8% each. Agricultural stocks led the declines in Shanghai and Shenzhen.

Japanese stocks, meanwhile, settled higher, led by gains in e-commerce and electronic stocks. The Nikkei Stock Average rose 1.3%.

  • Global Fundamental Analysis 29/09/2020, FP Markets
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