Global Fundamental Analysis 21/07/2020

OPENING CALL: The Australian share market is to open higher. SPI Future contract to open 42 points up. 


SoftBank Group Corp. has pulled about $700 million out of a Credit Suisse Group AG fund following the Swiss bank’s internal review into the Japanese conglomerate’s role, according to people familiar with the matter.


European Union leaders were closing in on an agreement late Monday for a likely EUR1.8 trillion ($2.06 trillion) coronavirus spending package meant to put the bloc’s slumping economy back on its feet.


Overnight Summary




Australian Market

Australia’s S&P/ASX 200 index settled 0.5% lower, following a mixed lead from Wall Street and the Australian government’s announcement that it is expanding its loan scheme for small businesses. Only the materials and technology sectors settled higher.


US Market

U.S. stocks rose on continued optimism about the prospects that a vaccine for the novel coronavirus will be ready for production this year.  The Nasdaq Composite Index soared 2.5% to a fresh closing record. But broader-market index gains were mostly modest, reflecting attention focused on businesses’ dimming outlook and the hurdles facing fresh stimulus packages as rising coronavirus infection levels threaten to stall the economic recovery.  The Dow Jones Industrial Average rose less than 0.1% as of 4 p.m. ET, after initially trading down. The S&P 500 rose 0.8%.



Silver futures marked their highest finish since 2016 and gold ended higher for a second straight session, with both precious metals finding support as the rise in global COVID-19 cases threatened economic recovery, raising expectations for additional fiscal stimulus measures.

Gold for August delivery on Comex rose 0.4%, to reach the highest settlement since July 8, when prices above $1,820 marked the highest level since September 2011. September silver added or 2.2% to end at its highest finish since August 2016,


Oil Futures

U.S. benchmark oil prices ended a modest 0.5% higher, getting a boost from a mid-session turn higher in U.S. stock markets that improved appetite for riskier assets such as crude and other commodities. But trading ranges remain extremely tight, with WTI basically hugging a $39-$41 range throughout July as investors try to gauge how much more recovery in oil demand there will be from coronavirus.



The Euro fell from highs near US$1.1464 to lows near US$1.1403 and was near US$1.1445 at the US close. The Aussie dollar rose from lows near US69.79 cents to highs near US70.15 cents and was near US70.14 cents at the US close. The Japanese yen eased from 107.02 yen per US dollar to JPY107.33 and was near JPY107.30 at the US close


European Markets

European sharemarkets closed mostly higher on Monday. The panEuropean STOXX 600 index rose by 0.8% after German Chancellor Angela Merkel said leaders now had a new basis for a deal on a €750 billion euro recovery fund and the bloc’s next 2021-2027 common budget, worth around €1.1 trillion.

A potential coronavirus vaccine from Oxford University and AstraZeneca (+1.4%) produced a strong immune response. The German Dax index was up by 1%. In London trade shares in Rio Tinto rose by 0.4%, but shares in BHP fell by 0.1%


Asian Markets

Earlier, mainland Chinese stocks regained some upward momentum with major indexes posting strong gains. The Shanghai Composite Index closed 3.1% higher, the smaller Shenzhen Composite Index added 2.7% and the startup-heavy ChiNext Price Index rose 1.3%. Suppliers of cement and other construction materials jumped.

Japanese stocks ended slightly higher, helped by gains in electronics stocks on the prospects of a more digitally connected society. Fujitsu and NEC shares climbed following a Nikkei business daily report that the U.K. government has sought Japan’s help in setting up its 5G mobile networks.

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Source - database | Page ID - 21986

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