Global Fundamental Analysis 4/05/2020

OPENING CALL: The Australian share market is expected to open lower. The SPI200 futures contract expected to open 7 points down.


Federal Reserve Bank of St. Louis President James Bullard warned that an extended shutdown of the U.S. economy to address the coronavirus crisis was ultimately unworkable-and could lead to lasting, deep damage.


Shares of the electric-car maker fell after Chief Executive Elon Musk tweeted he felt Tesla’s share price was “too high.” Asked later if the tweet was vetted or made in jest, the CEO said: “No.”


Overnight Summary




Australian Market


US Market

The technology heavyweights that powered the recent market rebound stumbled, dragging  down the broader stock market, as the coronavirus’ toll on some of the world’s biggest companies grew clearer.
The S&P 500 fell 2.8% as losses accelerated midday, dragging the index into the red for the week. The Dow Jones Industrial Average shed about 622 points, or 2.6%. The tech-heavy Nasdaq Composite lost 3.2%, lagging behind its peers after outperforming in recent weeks.

All three indexes, as of 4 p.m. Eastern time, had losses of less than 0.5% for the week. A busy week of corporate earnings and economic data drove big stock swings in recent days as investors parsed a flood of information highlighting the intense toll the coronavirus is having on the economy.
One of the biggest warning signs for investors: the tech giants that appeared almost untouchable even during a global pandemic showed signs of faltering as their quarterly
results streamed in.



Gold futures settled back above the key $1,700-an-ounce markas renewed concerns over the coronavirus pandemic and its effects on the global economy buoyed haven demand for the metal, but prices still posted a loss for the week.

Gold for June delivery rose $6.70, or 0.4%, to settle at $1,700.90 an ounce, after losing 1.1% a day ago. The metal, based on the most-active contracts, had put in a gain of 6.1% in April, but suffered a loss of about 2% this week, according to FactSet data.


Oil Futures

U.S. benchmark oil prices ended 5% higher at $19.78 a barrel, marking the highest closing level in more than two weeks on growing confidence that as coronavirus lockdowns are relaxed and global economies reopen for business, demand for oil and fuel will start to increase sharply.
WTI also ended about 17% higher for the week, marking the first weekly gain in four weeks.



The U.S. dollar weakened 0.3% against the yen and 0.2% against the euro but strengthened more than 0.7% against the U.K. pound, Canadian dollar and Aussie dollar in a risk-off move after Apple and Amazon sounded notes of caution as they posted earnings yesterday.


European Markets

European sharemarkets fell on Friday although a number of markets were closed for May Day holidays. The pan-European STOXX 600 fell by 0.8%. The German Dax market was closed. The UK FTSE index fell by 2.3%. In London trade shares of Rio Tinto fell by 1.9% with shares in BHP down by 3.4%.


Asian Markets

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Source - database | Page ID - 22156

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