Global Fundamental Analysis 09/07/2020

OPENING CALL: The Australian share market is expected to open higher. SPI Futures contract expected to open 50 points higher


The Federal Reserve published a partial list of banks and credit unions participating in its Main Street Lending Program in a bid to drum up interest in the program designed to help small and midsize companies weather the recession caused by the
coronavirus pandemic.   The Boston Fed, which is running the program, posted a state-by-state list of more than 80 lenders that will accept new loans under the program, which officials say has the capacity to extend up to $600 billion in credit but has so far attracted limited interest.


Overnight Summary




Australian Market

Australian shares closed 1.5% lower at 5920.3, fading steadily through the session amid growing unease at rising numbers of coronavirus cases. With the country’s second-largest city set for lockdown, consumer staples was the only sector to gain ground.


US Market

U.S. stocks edged higher, while mainland Chinese shares extended a winning streak for a seventh consecutive day. The S&P 500 advanced 0.8% as of the 4 p.m. close of trading in New York. The Nasdaq Composite added 1.4%. The Dow Jones Industrial Average was up 0.7%. U.S. stocks have traded in a narrow range for the past month, after zipping higher for much of the second quarter. Investors have been weighing stimulus efforts by central banks and governments against signs that the rebound in U.S. economic growth has lost speed. Meanwhile, there’s been a jump in coronavirus cases in parts of the country, and tensions have risen between China and the West.



Gold futures climbed for a fourth straight session, supported by the prospect of a lengthy period of government and central bank stimulus to support economies harmed by the COVID-19 pandemic.  August gold rose $10.70, or 0.6%, to settle at $1,820.60 an ounce. Prices based on the most-active contract settled at their highest since Sept. 14, 2011, according to FactSet data.


Oil Futures

U.S. benchmark oil prices settled at their highest closing price since March 6, rising 0.7% at $40.90 a barrel after weekly EIA data showed U.S gasoline demand at its highest level since March, and an acceleration in refinery activity. That helped to reinforce the view that despite some localized upticks in coronavirus cases, oil and fuel consumption rates are generally returning toward normal.




European Markets


Asian Markets

Earlier in the day, Chinese stocks continued their advance, with the benchmark Shanghai Composite Index rising 1.7% to 3403.44. The smaller Shenzhen Composite Index gained 1.9% while the ChiNext Price Index added 2.3%.  Japanese stocks settled lower, dragged by consumer and electronics stocks amid continuing concerns about the pace of recovery from the pandemic.

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