Global Fundamental Analysis 15/01/2021

Global Fundamental Analysis 15/01/2021, FP Markets

Opening Call: The Australian share market is to open higher.


U.S. stocks fell ahead of President-elect Joe Biden’s stimulus speech. The yield on the 10-year Treasury note climbed 3.9 basis points to 1.13%. The WSJ Dollar Index recently was down 0.23% to 85.01. Crude oil prices ended with gains, with U.S. prices closing at their highest in 11 months. Gold prices ended lower on a rise in U.S. bond yields, risk-on sentiment.


Australian Market

Australia’s S&P/ASX 200 index closed 0.4% higher, led by rebounding tech stocks and solid banking gains. The beaten-down tech sector jumped 4.7%.


US Market

U.S. stocks edged lower as investors awaited details of the incoming Biden administration’s plans for a fresh coronavirus relief package.

The Dow Jones Industrial Average pared earlier gains, falling about 69 points, or 0.2%. The S&P 500 dropped 0.4%, while the Nasdaq Composite Index lost 0.1%. President-elect Joe Biden is expected later in the day to unveil details on his proposed spending package to support households and businesses. Many investors are counting on additional stimulus to help the economy recoup wide-ranging losses stemming from the coronavirus pandemic and restrictions put in place to fight it.



Gold futures settled with a modest loss, as the recent rise in U.S. bond yields and a firmer dollar, as well as strength in the stock market, created some headwinds for bullion buying.

February gold fell $3.50, or 0.2%, to settle at $1,851.40 an ounce, after a 0.6% rise on Wednesday.


Oil Futures

U.S. benchmark oil prices booked gains, with U.S. benchmark prices finishing at their highest since February of last year, buoyed by the continuing Covid-19 vaccine rollout and expectations that the Biden administration’s stimulus package will help improve demand for crude.

West Texas Intermediate crude for February delivery rose 66 cents, or nearly 1.3%, to settle at $53.57 a barrel on the New York Mercantile Exchange. Prices for the front-month contract settled at their highest since Feb. 20, according to Dow Jones Market Data.



Major currencies were firmer against the US dollar in European and US trade. The Euro rose from lows near US$1.2110 to highs near US$1.2175 and was near US$1.2160 in late US trade. The
The Aussie dollar rose from lows near US77.40 cents to highs near US78 cents and was near US77.85 cents in late US trade. And the Japanese yen rose from near 104.15 yen per US dollar to near
JPY103.55 and was around JPY103.70 in late US trade.


European Markets

European sharemarkets rose on Thursday for a third straight day. Boosting sentiment was firm Chinese export data, hopes of a big lift in US fiscal stimulus and gains in technology stocks. The pan-European STOXX 600 index lifted by 0.7% to 11-month highs. The German Dax index rose by 0.4%, and the UK FTSE index gained 0.8%. But fresh political turmoil in Italy sent the country’s bourse lower by 0.5%, In London trade shares in Rio Tinto rose by 2.3% and shares in BHP rose by 3.8%.


Asian Markets

The Japanese Nikkei ended 0.8% higher, supported by transportation and financial stocks. Coronavirus-related developments remain closely watched after the Japanese government expanded the state of emergency measures.

China’s major stock benchmarks fell for a second day, likely as profit-taking persisted after a recent rally. The Shanghai Composite Index closed 0.9% lower while the Shenzhen Composite Index shed 1.4% and the ChiNext Price Index lost 1.3%.

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Source - database | Page ID - 21868

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