Global Fundamental Analysis 05/10/2020

Global Fundamental Analysis 05/10/2020, FP Markets

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


U.S. stocks fell after President Trump tested positive for coronavirus. The yield on the 10-year Treasury ticked higher to 0.70%. The WSJ Dollar Index nudged higher to 88.75.

Oil prices fell amid demand concerns. Gold prices settled lower despite worries surrounding Trump’s positive test.


Overnight Summary




Australian Market

Australia’s S&P/ASX 200 index also ended the session lower, falling 1.4%, amid the news of President Trump’s positive Covid-19 test. All sectors in Australia’s benchmark index closed in the red. Energy was the worst performer.


US Market

The S&P 500 fell, ending a recent run of gains, after President Trump said he and the first lady tested positive for coronavirus.

Despite the pressure, stocks recovered some ground to bounce off their session lows after House Speaker Nancy Pelosi said Mr. Trump’s prognosis changed the dynamics of aid talks with Republicans.

The S&P 500, as of 4 p.m. ET, was down nearly 1%, snapping a two-day winning streak.

The Dow Jones Industrial Average pared earlier losses, settling just 0.5% lower. The Nasdaq Composite suffered bigger losses amid a retreat from tech stocks, falling 2.2%.



Gold futures ended lower even though President Donald Trump and his wife announced they had contracted the COVID-19 disease and would be quarantining in the White House for days.

December gold fell $8.70, or nearly 0.5%, to settle at $1,907.60 an ounce on the Comex.


Oil Futures

Crude futures closed 4.3% lower, capping a week marked by fears of elevated production clashing with weak demand amid a lack of added stimulus. The front-month for November delivery lost 8% and is down 39% so far this year.

Traders are skeptical that OPEC+ production countries will stick to cuts meant to avoid oversupply as the world grapples with a resurgent Covid-19 underscored by news that President Trump has the coronavirus.



Aussie shares are surging at lunch on light volume, with the ASX 200 lifting by 2.4 per cent to 5,932.2 despite a weak lead from Wall Street, softer than expected US jobs growth in September and uncertainty with President Trump’s health. Keep in mind that the Aussie market slumped by 1.4 per cent on Friday and is coming off the back of its worst week since mid-April.


European Markets


Asian Markets

Earlier Friday, Japanese stocks fell after President Trump tweeted that he has tested positive for coronavirus. The Nikkei Stock Average gave up earlier gains and settled 0.9% lower.

Mainland China’s major stock benchmarks were on a weeklong holiday.

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Source - database | Page ID - 21710

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