Global Fundamental Analysis 15/06/2020

OPENING CALL: The Australian share market is expected to open lower. 


American Airlines said that it plans to pledge its loyalty program as collateral for a $4.75 billion government loan as it seeks to shore up capital to manage through the coronavirus pandemic.


British output shrank by a fifth in April, a record decline that exposes the cost of nationwide lockdowns on the world’s advanced economies.


Overnight Summary




Australian Market


US Market

Stocks recovered somewhat a day after suffering their worst rout since March, but finished the week lower.  The Dow Jones Industrial Average rose 477 points, or 1.9%, at the end of a choppy trading session in which it surged 837 points shortly after the opening bell, then pared gains and briefly turned negative. The index slid 6.9% on Thursday on concerns about an uptick in coronavirus cases and the pace of the economic recovery.  The S&P 500 rose 1.3%, while the Nasdaq Composite ticked up 1%. All three indexes closed the week down at least 2%, snapping a three-week winning streak.



Meanwhile, gold futures finished with a modest loss, pressured on the back of strength in the U.S. stock market, the dollar and bond yields, but worries about the economic impact of a resurgence in COVID-19 cases helped the precious metal tally a weekly climb. August gold fell $2.50, or 0.1%, to settle at $1,737.30 an ounce, giving back some of the 1.1% gain from a day earlier. For the week, prices for the most-active contract rose 3.2%, according to FactSet data.


Oil Futures

Oil futures fell to end the week lower for the first time in seven weeks, according to FactSet data. A resurgence of COVID-19 cases fed concerns over the outlook for the global economy and energy demand. July West Texas Intermediate oil fell 8 cents, or 0.2%, to settle at $36.26 a barrel on the New York Mercantile Exchange.



The WSJ Dollar Index was up 0.20% to 91.33.


European Markets


Asian Markets

Earlier in the day in Asia, mainland Chinese stocks ended the session mixed as the markets narrowed some of the losses from morning trade. Shares turned weaker, along with most regional equity markets, as fears over a second wave of Covid-19 cases and the Fed’s gloomy economic outlook weighed on sentiment. The benchmark Shanghai Composite Index fell 1.16 point to 2919.74, while the Shenzhen Composite Index reversed morning declines, rising 0.3% to settle at 1870.70. The ChiNext Price Index, a benchmark for emerging industries and startups, also recovered from earlier losses to end 0.5% higher at 2206.76.

Hong Kong stocks ended lower, as the market continued to weaken after reaching a multi-month high earlier this week. Asian equities broadly tumbled, as investor sentiment took a hit from signs of a second wave of coronavirus infections in the U.S. and the Fed’s gloomy economic forecast. The benchmark Hang Seng Index fell 0.7% to settle at 24301.38.

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