Global Fundamental Analysis 09/03/2020

OPENING CALL: The Australian share market is expected to open higher. The SPI200 futures contract expected to open 93 points down.


Berkshire Hathaway has backed out of financing a major gas project in Quebec, prompting worries that international investors are increasingly shunning Canada after protests over another energy project.  


The yield on 10-year Treasurys intraday fell to 0.750%, after earlier notching a record intraday low of 0.695%.  It settled Thursday at 0.924%. The yield on the 30-year benchmark dropped to 1.298%.  


Overnight Summary




Australian Market

Australian shares continued their correction with a 2.8% fall to 6216.2, their lowest close in almost 11 months. Every sector lost ground as the benchmark S&P/ASX 200 followed U.S. markets lower and closed out a consecutive weekly decline for the first time since early October. The index closed at its lowest level since April 11 and was 13% down on its Feb. 20 record close of 7162.5.  

Tech stocks were the worst performers, closely followed by financials as the big banks of CBA, Westpac, ANZ and NAB dropped between 3.7% and 5.5% on fears of compressed margins and rising bad debts due to the economic impact of the coronavirus.


US Market

The Dow fell 256.50 points, or 1%, to close at 25864.78. The Dow had been down more than 890 points shortly after the opening bell, before paring its losses and clawing back nearly 600 points in the last 50 minutes of trading. It closed the week with a gain of 1.8%. The S&P 500 dropped 51.57, or 1.7%, to 2972.37. The Nasdaq Composite slid 162.98, or 1.9%, to close at 8575.62.  

Both the S&P and the Nasdaq ended the week with modest gains, thanks in large part to a rally at the start of the week.  



Gold futures finished higher for the day and week as selling in stocks and sliding bond yields helped the precious metal to pick up $105.70 in the course of a week, marking the sharpest point and percentage gain over that period since 2011.


Gold for April delivery on Comex gained $4.40, or 0.3%, to $1,672.40 an ounce, after touching an intraday peak at $1,690.70. For the week, bullion advanced 6.79%, representing its largest weekly gain for a most-active contract since 201


Oil Futures

West Texas Intermediate crude for April delivery dropped $4.62, or 10.1%, to settle at $41.28 a barrel on the New York Mercantile Exchange, with prices booking the sharpest daily decline since Nov. 28, 2014 based on the most-active contract.



The WSJ Dollar Index was recently down 0.41% to 90.10.  


European Markets

European stocks plunged as coronavirus jitters persisted and oil prices sank after a production-cut deal between OPEC and Russia failed to materialize. The Stoxx Europe 600 dropped 3.6%, the FTSE 100 fell 3.5%, the CAC-40 was down 4.1% and the DAX declined 3.4%. 


Asian Markets

Japanese stocks end lower, with the Nikkei Stock Average closing down 2.7% at 20749.75, after government data showed the country’s household spending fell in January for the fourth consecutive month.  

Meanwhile, South Korean stocks snapped a four-session winning streak to finish lower on renewed fears about the coronavirus epidemic’s economic fallout. The benchmark Kospi fell 2.2% to 2040.22. Airline, refinery and tech companies led the losses. 

The benchmark Hang Seng Index fell 2.3%, the largest one-day slump since late February, to settle at 26146.67, a new closing low this month. Malaysia’s benchmark Kuala Lumpur Composite Index fell 0.5% to 1483.10 on fears that the coronavirus outbreak could grow into a global pandemic, as cases outside China rise.  

Indian shares fell on renewed fears that the spread of the coronavirus epidemic may disrupt business activity and lead to an economic slowdown. The benchmark Sensex closed 2.3% lower at 37576.62, with losses broad-based. Banks and other financial firms were among the biggest decliners. 

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Source - database | Page ID - 21765

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