Global Fundamental Analysis 03/06/2020

OPENING CALL: The Australian share market is expected to open higher. The Spi 200 contract to open  31 points higher.


President Trump’s economic team wants to encourage the public to return to work and resume normal life, including going to restaurants and taking vacations, in its proposals for the next coronavirus relief package


Facebook’s Mark Zuckerberg, addressing employees Tuesday, defended his decision to preserve posts on the platform by President Trump despite mounting outrage from insiders and civil rights activists that one of his messages last week was tantamount to a call for violence.


Overnight Summary




Australian Market


US Market

U.S. stocks rose even as investors weighed the prospects of a protracted economic recovery following the coronavirus lockdowns, outbreaks of violence across American cities and tensions with China.
The Dow Jones Industrial Average climbed 267.63 points, or 1.1%, to 25742.65, led by Home Depot, American Express and Goldman Sachs. The S&P 500 rose 25.09 points, or 0.8%, to 3080.82, and the Nasdaq Composite added 56.33 points, or 0.6%, to 9608.37. The technology-heavy gauge is only 2.1% below its February high.

The benchmark S&P 500 has risen for six of the past seven sessions-and is up 38% from its March low-boosted by data suggesting the downturn in the U.S. economy has bottomed and hopes that the coronavirus will be brought under control. Many analysts attribute the recent rebound to an unprecedented level of stimulus offered by the Federal Reserve and Congress.



Gold for August delivery on Comex lost $16.30, or 0.9%, to settle at $1,734 an ounce after declining by less than 0.1% on Monday. July silver dropped 57 cents, or 3%, to $18.26 an ounce, more than erasing the 1.8% rise it scored a day earlier.


Oil Futures

Oil prices rose, extending a recent recovery with analysts anticipating that oil producers led by Saudi Arabia and Russia will extend supply curbs in response to the energy industry’s crisis.
U.S. crude futures for July delivery surged 3.9% to $36.81 a barrel on the New York Mercantile Exchange. Front-month futures have risen to their highest level since early March after dropping below $0 for the first time ever on April 20 due to a lack of available storage for excess crude.
Brent crude for August delivery, the global gauge of oil prices, advanced 3.3% to $39.57 a barrel on the Intercontinental Exchange.



The WSJ Dollar Index was recently down 0.01% to 91.75. The British pound rose to its highest level against the U.S. dollar in a month as investors grew more optimistic about trade negotiations between the U.K. and the European Union.
Sterling strengthened 0.4% to $1.2552 Tuesday, the highest level since April 30. The currency has climbed about 2.8% over the past five trading sessions.


European Markets


Asian Markets

Earlier in the day in Asia, Japanese stocks extended early morning gains to end higher, with the Nikkei Stock Average rising 1.2% to 22325.61 amid improved sentiment on signs the global economy may be recovering.
Any developments regarding U.S.-China trade tensions are likely to remain a focus for the market. Retail-related stocks were among the best performers.

Hong Kong stocks rose for a second consecutive day after the U.S. on Friday stopped short of taking definitive steps against the city and mainland China over Beijing’s plan to enact national-security laws in Hong Kong. The Hang Seng Index closed 1.1% higher at 23995.94. Local real-estate companies helped lift the index higher as the city’s retail sales in April declined at a slower pace than March.

South Korean stocks rose for a third straight session, with the benchmark Kospi closing 1.1% higher at 2087.19. Shipbuilding, banking and auto stocks led the gains, after Qatar Petroleum signed a massive deal with three Korean shipyards overnight to build about 100 natural-gas carriers.

China’s major stock-market indexes ended mixed, with the benchmark Shanghai Composite Index and smaller Shenzhen Composite Index each adding 0.2%, while the startup-heavy ChiNext Index fell 0.6%.

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Source - database | Page ID - 21668

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