Global Fundamental Analysis 23/04/2020

OPENING CALL: The Australian share market is expected to open higher. The SPI200 futures contract expected to open 49 points up.


Facebook’s $5.7 billion tie-up with an Indian mobile leader could create a new kind of animal in the world’s biggest untapped digital market: a social media behemoth wedded to a mobile infrastructure titan.


The Senate passed an aid package that delivers more than $480 billion in aid to small businesses and hospitals, the federal government’s latest effort to blunt the economic and health-care crisis caused by the coronavirus pandemic.


Overnight Summary




Australian Market

The SPI 200 futures contract was higher by 49 points, or 0.94 per cent, at 5286 at 7am AEST.
AUD +0.6% to 63.14 US cents


US Market

U.S. stocks rallied, clawing back some of the week’s losses, as oil prices rose and investors looked to corporate earnings reports to gauge the health of U.S. businesses during the coronavirus pandemic.  The Dow Jones Industrial Average added nearly 2% after dropping more than 1,200 points to start the week.

The S&P 500 rose 2.3%, and the tech-heavy Nasdaq Composite advanced 2.8%. The gains were broad, with all 11 sectors of the S&P 500 rising, led by the technology group, and 26 of the 30 members of the Dow Jones Industrial Average in the green.



Gold futures settled at their highest in a week, as nagging concerns about the global economy helped support a rise in the precious metal, a day after prices settled at their lowest in nearly two weeks.

Gold for June delivery on Comex rose $50.50, or 3%, to settle at $1,738.30 an ounce, the highest most-active contract finish since April 15, according to FactSet data. Prices lost 1.4% on Tuesday to mark the lowest close since April 8.


Oil Futures

Oil climbed for the second consecutive session, ending the day with a 19% gain at $13.78/bbl. as investors began to eye a reopening of the U.S. economy that could spur a rebound in oil and fuel demand.
A revival in Iran tensions also gave a boost to oil after President Trump sent a Twitter message telling the Navy to “shoot down and destroy” Iranian gunboats if they harass U.S. ships.   Investors mostly shrugged off an EIA report that showed, as expected, a large, 15 million barrel rise in crude-oil inventories.



The U.S. dollar strengthened 0.4% against the euro and also appreciated slightly against the yen.  The euro is trading lower against major currencies ahead of an EU summit tomorrow as the forex market awaits economic recovery plan news.  The WSJ Dollar Index ticked 0.1% higher.


European Markets

European sharemarkets closed firmer on Wednesday in response to a rebound in oil prices and on hopes for more fiscal stimulus. There is an European Union summit on Thursday. The energy sector rose 4.7% with shares in BP, Royal Dutch Shell and Total all up between 4.8-5.6%.

The pan-European STOXX 600 rose by 1.8%. The German Dax index gained 1.6%. Italy’s sharemarket rose 1.9% after the Prime Minister said that the country was likely to ease lockdown restrictions on May 4.

The UK FTSE index closed higher by 2.3%. In London trade, shares of Rio Tinto rose by 3.7% and BHP shares closed higher by 3.1%.


Asian Markets

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Source - database | Page ID - 22017

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