Global Fundamental Analysis 14/07/2020

Australian Market

Australia’s S&P/ASX 200 index closed 1.0% higher at 5977.5, fueled by Friday’s strong gains on Wall Street and slower growth in new virus infections in Victoria state.

US Market

A rally in U.S. stocks fizzled after California rolled back its reopening plans, spurring worries about another coronavirus lockdown. Major stocks had been sharply higher earlier in the session, with Dow Jones Industrial Average rising more than 500 points. But sentiment shifted after California moved to close all indoor dining, bars and other businesses. The Los Angeles Unified School District, the nation’s second largest, said it would start the school year online.
The Dow edged up 10 points, or less than 0.1%, following two consecutive weeks of gains.  The S&P 500 fell 0.9%. The technology-heavy Nasdaq Composite, which has been at record highs in recent days, dropped 2.1%.

Commodities

Gold prices tallied their first gain in three sessions, with analysts tying support to a global rise in the number of COVID-19 cases and strong investment in gold-backed exchange-traded funds. Gold for August delivery on Comex rose $12.20, or 0.7%, to settle at $1,814.10 an ounce.

Oil Futures

Oil futures ended lower as major oil-producing countries were said to consider easing output curbs as global crude demand has seen improvement as some economies have reopened from closures due to the coronavirus pandemic.  West Texas Intermediate crude for August delivery on the New York Mercantile Exchange fell 45 cents, or 1.1%, to settle at $40.10 a barrel. The global benchmark, September Brent crude, lost 52 cents, or 1.2%, at $42.72 a barrel on ICE Futures Europe.

Forex

Major currencies were mixed against the US dollar in European and US trade. The Euro rose from lows near US$1.1301 to highs near US$1.1374 and was near US$1.1345 at the US close. The Aussie dollar fell from highs near US69.91 cents to lows near US69.42 cents and was near US69.45 cents at the US close. The Japanese yen eased from 106.89 yen per US dollar to JPY107.31 and was near JPY 107.22 at the US close

European Markets

European sharemarkets rose on Monday. The pan-European STOXX 600 index lifted 1%. Finnish valves maker Neles shares surged 37.6% after Swedish industrial group Alfa Laval announced a €1.73 billion cash bid for the company. Nordic bank DNB shares rose 9.9% after an earnings beat. The German Dax and UK FTSE indexes both gained 1.3%. In London trade shares in Rio Tinto rose 3.1% while shares in BHP rose by 2.4%.

Asian Markets

Earlier in the day, Chinese stocks rebounded strongly after showing some weakness Friday. The benchmark Shanghai Composite Index rose 1.8% to settle at 3443.29, while the Shenzhen Composite Index jumped 3.5% to 2329.40. The ChiNext Price Index, which measures the performance of emerging industries, surged 4.0% to end at 2889.43.  Japanese stocks ended broadly higher, with auto and electronics stocks leading gains thanks to continuing hopes for recovery from the Covid-19 pandemic.