Global Fundamental Analysis 09/10/2020

Global Fundamental Analysis 09/10/2020, FP Markets

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

 

U.S. stocks closed higher amid cautious optimism. The 10-year Treasury note yield fell 2.1 basis points to 0.764%. The WSJ Dollar Index recently fell 0.08% to 88.60. Crude oil prices ended higher as Hurricane Delta cut more than 90% of gulf crude output. Gold futures settled higher amid hopes for an economic stimulus.

 

Overnight Summary

 
 

EACH MARKET IN FOCUS

 

Australian Market

Australia’s S&P/ASX 200 index ended the session up 1.1% to 6102.2 as optimism about the local economy and prospects of further U.S. stimulus kept the market on course for its best week since April. The benchmark S&P/ASX 200 index’s fourth straight gain took its weekly advance to 5.4%, with banking stocks again strong.

 

US Market

U.S. stocks edged higher as investors showed cautious optimism that Congress will reach an agreement on fiscal stimulus measures aimed at parts of the economy.

The S&P 500 rose 0.8% as of the 4 p.m. ET close of trading, extending the broad-market index’s rally into a second day. The Dow industrials added 0.4% and the tech-heavy Nasdaq Composite advanced 0.5%.

 

Commodities

Gold futures rose to stage a partial rebound from a more than one-week low a day earlier, buoyed by optimism over the renewed prospects for some sort of U.S fiscal stimulus.

December gold for December delivery on Comex climbed by $4.30, or 0.2%, to settle at $1,895.10 an ounce.

 

Oil Futures

Oil futures ended higher as Hurricane Delta forced the shut-in of more than 90% of the Gulf of Mexico’s crude output and the Saudis reportedly consider postponing OPEC plans to raise output.

West Texas Intermediate crude for November delivery rose $1.24, or 3.1%, to settle at $41.19 a barrel on the New York Mercantile Exchange.

 

Forex

Major currencies were mixed against the US dollar in European and US trade. The Euro eased from near US$1.1775 to lows near US$1.1735 and was near US$1.1755 at the US close. The Aussie dollar rose from US71.45 cents to US71.70 cents and was near US71.65 cents at the US close. And the Japanese yen held between 105.91 yen per US dollar and JPY106.04 and was near JPY106.00 at the US close.

 

European Markets

European sharemarkets rose to three-week highs on Thursday. Investors were hopeful of more US fiscal stimulus. But on the negative side of the ledger, investors worried about the growing number of coronavirus cases across Europe. Banks, oil & gas, and travel & leisure sectors drove gains. The pan-European STOXX 600 index rose for the fifth time in six days, up by 0.8%. The German Dax index rose by 0.9%. The UK FTSE index rose by 0.5%. In London trade, shares of Rio Tinto fell 0.5% while BHP shares lost 0.9%.

 

Asian Markets

Japanese stocks ended higher after the Bank of Japan upgraded its view on the economy in eight of the country’s nine regions. Real estate stocks were among the best performers.

The Nikkei Stock Average rose 1.0% to close at 23647.07.

Mainland China’s major stock benchmarks remained on national holiday.




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