Global Fundamental Analysis 8/05/2020

Australian Market

US Market

The Nasdaq Composite index closed in positive territory for 2020 for the first time in two months, clawing back much of its losses since the coronavirus pandemic began rattling the U.S. stock market.

Investors have continued to prize the big tech companies that drove much of the recent decadelong bull market and which make up a heavy share of the Nasdaq. With a daily advance of 1.4%, the index ended the day in the green year-to-date-up about 0.1%-for the first time since March 4.

Overall, U.S. stocks rose as the number of new applicants for unemployment benefits continued to decline. The S&P 500 rose 1.2%, and the Dow Jones Industrial Average added 0.9%, 0r 211 points. Both of those indexes are still down 10% or more for 2020.

Commodities

On Comex, June gold rose $37.30, or 2.2%, to settle at $1,725.80 an ounce on Comex. Meanwhile, July silver rose 57.5 cents, or 3.8%, to $15.59 an ounce. Gold lost more than 1% on Wednesday as the U.S. dollar strengthened and the reopening of some economies around the world appeared to dent demand for the haven metal.

Oil Futures

Oil futures finished lower, giving up earlier gains as traders continued to weigh the outlook for energy demand.  June West Texas Intermediate oil fell 44 cents, or 1.8%, to settle at $23.55 a barrel on the New York Mercantile Exchange.

Forex

The WSJ Dollar Index recently was down 0.35% to 93.73.  Earlier in the day, the pound erased earlier gains after the Bank of England kept its quantitative easing program unchanged but left the door open to future fresh stimulus.

European Markets

European sharemarkets rose on Thursday. The pan-European STOXX 600 lifted by 1.1%. Shares of UK movie theatre operator Cineworld rose 13.9% after CEO Mooky Greidinger said that a reopening of cinemas by the end of June was “very realistic.” The German Dax index rose by 1.4%. The UK FTSE index was also up 1.4% after the Bank of England held interest rates at 0.1%. In London trade, shares of Rio Tinto were higher by 3.4% and BHP shares were up by 2.9%.

Asian Markets

Earlier in the day in Asia, Japanese shares reversed early declines to end higher, with the Nikkei Stock Average rising 0.3% to 19674.77. Pharmaceutical stocks were among the best performers amid concerns about the coronavirus pandemic.
Hong Kong shares ended lower, snapping two days of gains as the city’s exchange operator HKEX posted a 13% decline in first quarter net profit, missing market expectations. The benchmark Hang Seng Index lost 0.7% to settle at 23980.63.

Meanwhile, South Korean stocks ended flat, with the benchmark index Kospi falling 0.15 point, or 0.01%, to 19288.61. Stocks were mixed, with retail firms lower while internet companies rose. Anxiety of U.S.-China tensions over the pandemic weighed on investor sentiment, Kiwoom Securities id. But a surprise increase in China’s April exports offset the downbeat mood. The index oscillated between small gains and losses, as corporate earnings continued to trickle out.