Global Fundamental Analysis 11/08/2020

Global Fundamental Analysis 11/08/2020, FP Markets

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


U.S. stocks were modestly higher as stimulus talks continued. The WSJ Dollar Index rose 0.11% to 88.83. The yield on the benchmark 10-year U.S. Treasury ticked up to 0.571%, from 0.562% Friday. Oil prices rose amid signs the global economic recovery is trudging forward. Gold prices settled higher amid further provocations between the U.S. and China.


Overnight Summary




Australian Market

Australian shares rose 1.8% to 6110.2, as banking and retail stocks shone despite the country recording a daily record of 19 corona-virus deaths. Every sector on the benchmark S&P/ASX 200 index rose, with the financials’ 2.6% gain putting them ahead.


US Market

U.S. stocks ended the session with gains as investors assessed the chances of fresh federal stimulus spending, the slowing pace of new corona-virus infections and escalating tensions with China.

The Dow Jones Industrial Average climbed 1.3%, about 358 points, buoyed by shares of Boeing and Caterpillar. The S&P 500 added 0.3%, after a week during which the benchmark index advanced 2.5%.



Gold futures settled higher, resuming a strong uptrend for the precious metal, after China imposed fresh sanctions against U.S. officials in apparent retaliation for similar measures against Hong Kong and mainland officials last week.

December gold added $11.70, or 0.6%, to settle at $2,039.70 an ounce, after the metal lost 2% on Friday, cutting into its weekly gain of 2.1%. The commodity has climbed for nine consecutive weeks, marking its longest such streak since the period ended May 12, 2006.


Oil Futures

U.S. benchmark oil prices rose toward the top end of recent ranges, settling 1.7% higher at $41.94 a barrel on slowly emerging optimism that the global corona-virus pandemic is starting to end, and activities such as air travel could soon be back toward normal.



Major currencies were mixed against the US dollar in European and US trade. The Euro fell from highs near US$1.1795 to lows near US$1.1735 and was near US$1.1740 at the US close. The Aussie dollar rose from lows near US71.40 cents to highs near US71.80 cents and was near US71.50 cents at the US close. And the Japanese yen rose from 106.20 yen per US dollar to JPY105.70 and was near JPY105.95 at the US close.


European Markets

European share-markets rose on Monday. An easing of deflation in China due to stronger industrial activity balanced US-Chinese trade tensions. Investors also tracked negotiations between White House officials and Democrats over a stimulus package to support job-seekers. Banks rose 2% but technology fell by 1.5%.The pan-European STOXX 600 index lifted by 0.3%. The German Dax index rose by 0.1%. And the UK FTSE index lifted by 0.3%. In London trade, shares in Rio Tinto rose by 0.5% and shares in BHP closed higher by 1.1%.


Asian Markets

China’s major stock benchmarks broadly reversed early weakness to close
slightly higher. The Shanghai Composite Index ended 0.8% higher at 3379.25 and the smaller Shenzhen Composite Index added 0.2%, while the ChiNext Price Index dropped 0.5%. Brokerages rebounded, lifting the Shanghai benchmark into positive territory. Japanese markets were closed in observance of Mountain Day.

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Source - database | Page ID - 21810

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