Global Fundamental Analysis 25/11/2020

Global Fundamental Analysis 25/11/2020, FP Markets

Opening Call: The Australian share market is to open higher.


U.S. stocks surged and the Dow closed at a new record, as the Trump administration said it would formally begin Joe Biden’s presidential transition. The yield on the 10-year Treasury ticked higher to 0.89%.

The WSJ Dollar Index fell to 86.88. Oil prices continued to rise amid the positive economic mood. Gold prices continued to fall.


Australian Market

Australia’s S&P/ASX 200 index settled 1.3% higher, helped by strong gains in oil prices which gave a boost to energy stocks. All sectors finished in positive territory.


US Market

U.S. stocks surged, with the Dow Jones Industrial Average crossing 30000 for the first time, after President Trump said his aides would cooperate with President-elect Joe Biden’s transition to the White House.

The index of blue-chip companies gained 1.5% to 30046. Earlier in the day, the Dow went above 30100, its highest intraday level in history.

Investors are cheering signs that a protracted fight over control of the White House is potentially drawing to a close, reducing political risks over the winter months.

The S&P 500 rose 1.6%, its second day of gains, while the Nasdaq Composite rose 1.3%.



Gold futures logged a second straight sharp loss but held above a key level of support, as the precious metal retreated amid a brightening economic outlook.

December gold lost 1.8% to settle at $1,804.60 an ounce, taking it to its lowest level since mid-July, according to Dow Jones Market Data. It touched an intraday low at $1,797.10.


Oil Futures

A recent rise in oil prices continued, sending crude to its highest level since early March with investors wagering on a brighter economic outlook and higher demand for fuel.

U.S. crude-oil futures for January delivery advanced 4.3% to settle at $44.91 a barrel, rallying for the sixth time in seven sessions and eclipsing their peak closing level from late August.



Major currencies were mixed against the US dollar in European and US trade. The Euro eased from highs near US$1.1895 to lows near US$1.1840 but was near US$1.1890 in late US trade. The Aussie dollar traded between US73.10 cents and US73.65 cents and was near US73.60 cents in late US trade. The Japanese yen eased from near 104.14 yen per US dollar to JPY104.73 and was near JPY104.47 in late US trade.


European Markets

European sharemarkets closed higher on Tuesday, ending near 9-month highs, with the pan-European STOXX 600 index up 0.9%. Optimism about vaccine roll-outs, coupled with hopes of an ending of lockdowns in France, buoyed investors. Oil and gas led the gains, up 4.7%. Travel & leisure stocks rose by 2.7%. The German Dax index rose by 1.3%, buoyed by news that the German economy grew 8.5% in the September quarter. The UK FTSE index gained 1.6%. In London trade shares in Rio Tinto rose 3.8% and shares in BHP rose 5.8%.


Asian Markets

Earlier Tuesday, China’s major stock benchmarks slipped. The Shanghai Composite Index lost 0.3%, the Shenzhen Composite Index dropped 0.3% and the ChiNext Price Index fell 0.4%.

Hong Kong’s Hang Seng Index closed 0.4% higher. The Nikkei Stock Average rose 2.5% to reach its highest close since May 1991, on growing hopes for the successful development of Covid-19 vaccines.

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