Global Fundamental Analysis 21/04/2020

OPENING CALL: The Australian share market is expected to open lower. The SPI200 futures contract expected to open 53 points down.


US crude oil futures turned negative on Monday for the first time in history, ending the day at -US$37.63 a barrel as traders sold crude heavily due to rapidly filling storage space at the key Cushing, Oklahoma hub


The e-commerce software company has benefited from surging traffic as vast swaths of  the global population have been forced to do more of their shopping online. The stock has climbed 81% since hitting a recent low on April 2.


Overnight Summary




Australian Market

In Australia, the CBA Household Spending Intentions (HSI) report, RBA April 7 Board meeting minutes, ABS weekly payroll jobs & wages survey and consumer sentiment data are all scheduled. RBA Governor Lowe speaks.


US Market

U.S. stocks slid to start to another potentially volatile week as investors continued to try to gauge the extent of the economic damage from the coronavirus pandemic.
Major U.S. indexes opened sharply lower, eased their losses midday and then slumped again late in the session in conjunction with a historic plunge in oil prices.
The Dow Jones Industrial Average fell about 596 points, or 2.5%, pulled down by losses in energy stocks. The S&P 500 dropped 1.8%, while the Nasdaq Composite lost 1% after spending much of the day in positive territory.

Investors have parsed a deluge of economic and health information in recent weeks about the fast-spreading coronavirus, which has shuttered local economies, forced millions of layoffs and prompted unprecedented intervention from the Federal Reserve and the U.S. government.



Gold futures ended modestly higher, reclaiming a perch above $1,700, as early gains for the dollar faded and as a tumble in crude-oil prices–a sign of waning risk
appetite–provided a pathway for the precious metal to gain some ground higher.  The metal gained some traction higher as the May contract for oil finished in negative
territory for the first time in history. That dynamic helped to overcome signs of growing optimism around treatments for COVID-19 and an easing of global lockdowns intended to slow the spread of the deadly illness, which had been a drag on bullion buying.

Moves for bullion appear somewhat muted as investors brace for expected weak data from quarterly results from corporations. About 20% of the S&P 500 will report earnings this week and the results are expected to be the worst on a year-over-year basis since late 2009.

Gold for June delivery on Comex rose $12.40, or 0.7%, to settle at $1,711.30 an ounce, but had traded at an intraday low at $1,685. Last week, the metal put in a weekly decline of 3.1%.


Oil Futures

U.S. benchmark oil prices fell by the most ever, tumbling first to just 1 cent a barrel before turning negative and ending the session at -$37.63/bbl. That means investors would be paid to take delivery of WTI oil at the hub in Cushing.



The dollar was up 0.2% against its major rivals, based on trading for the ICE U.S. Dollar index.


European Markets

European sharemarkets closed higher on Monday. The panEuropean STOXX 600 closed up by 0.7%, after being down as much as 1.2% during the session as oil prices plunged due to oversupply concerns with the energy sector down by 0.5%. But health care share rose by 1.8% after drugmaker Novartis (+2.0%)
was given US regulatory approval to trial malaria drug hydroxychloroquine against COVID-19.

The German Dax and UK FTSE indexes both rose by 0.5%. In London trade, shares of Rio Tinto rose by 0.4%, but shares of BHP fell by 0.4%


Asian Markets

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