Global Fundamental Analysis 17/07/2020

Australian Market

Australia’s S&P/ASX 200 index closed 0.7% lower at 6010.9, after the country’s jobless rate reached a 21-year high in June and Victoria state reported Australia’s biggest daily increase in coronavirus cases so far.

US Market

U.S. stocks slipped, while Chinese stocks suffered their biggest drop in more than five months, on fresh concerns about rising coronavirus infections and the global economy’s faltering recovery from the pandemic.  The Dow Jones Industrial Average fell 1%, the S&P 500 dropped 0.8%, and the Nasdaq Composite lost 1.1%

Commodities

Gold futures fell to their lowest finish in more than a week, with dollar-denominated prices for the metal pressured as the U.S. dollar looked to recoup its loss from a day earlier. Gold for August delivery on Comex fell $13.50, or 0.7%, to settle at $1,800.30 an ounce, after adding less than 0.1% on Wednesday. The settlement was the lowest for a most-active contract since July 6, according to FactSet data.

Oil Futures

Crude-oil prices finished lower, taking a cue from a decline in global equities, after holding their own a day earlier following a decision by the Organization of the Petroleum Exporting Countries and its allies to begin trimming production cuts next month. West Texas Intermediate crude for August delivery on the New York Mercantile Exchange fell 45 cents, or 1.1%, to settle at $40.75 a barrel, while September Brent crude, the global benchmark, lost 42 cents, or 1%, at $43.37 a barrel on ICE Futures Europe.

Forex

Major currencies were mostly lower against the US dollar in European and US trade. The Euro fell from highs near US$1.1441 to lows near US$1.1370 and was near US$1.1380 at the US close. The Aussie dollar fell from highs near US70.10 cents to lows near US69.63 cents and was near US69.70 cents at the US close. The Japanese yen eased from 106.89 yen per US dollar to JPY107.39 and was near JPY107.30 at the US close

European Markets

The European Central Bank (ECB) kept its interest rates steady. The panEuropean STOXX 600 index fell by 0.5%. The German Dax index was down by 0.4% and the UK FTSE index closed 0.7% lower. In London trade shares in Rio Tinto fell by 0.4% with shares in BHP down by 0.6%

Asian Markets

Earlier in the day in Asia, Japanese stocks extended morning losses to close 0.8% lower at 22770.36, weighed by utilities stocks. Mainland China stocks ended the session sharply lower, as the market weakened for a third straight day after strong gains earlier in the month. The benchmark Shanghai Composite Index fell 4.5%, the largest one-day loss since early February, to settle at 3210.10. The Shenzhen Composite Index slumped 5.2% to 2144.24.