Global Markets Tick Up As Futures Rise

25/09/2020 Asian stocks rose on Friday with U.S. futures as market participants weighed chances of a new American stimulus package against an uptick in global coronavirus cases. S&P 500 contracts whipsawed on Thursday’s volatile session, closing firmer by the end of the day’s trading after news about the likelihood of fresh government aid resurfaces. Crude oil advanced. Australian equities outperforming regional counterparts, helped by banks. Locally, the JSE was closed on Thursday for “Heritage Day” holiday. On Wednesday the local bourse tracked firmer global markets, with the All-share closing firmer 1.84% to 54,247.81 points and the Top-40 index gaining 2.04%. Resources bagged 1.08% and financials 0.25%. Spot gold traded 0.6% lower at $1,852 an ounce on Thursday, set for the lowest close since July.

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EU/UK
The FTSE100 stocks closed below the waterline, in the red, on Thursday 1.30% down as investors digested details of Chancellor Rishi Sunak’s new measures to replace the furlough scheme. Elsewhere in Europe markets were weighed down by weakness on Wall Street following the release of a worse than expected reading for secondary jobless claims and on fading hopes for further US stimulus spending. The pan-European Stoxx 600 index was down 1.02%, France’s CAC-40 also fared poorly falling by 0.83%, with Germany’s DAX lower by 0.29% at the close.

US
Wall Street opened flat on Thursday despite weekly jobless claims figures that some economists said showed that the jobs market was set to stall in October. The Fed. Reserve Bank of St. Louis President James Bullard, in the most upbeat tone, said the U.S. economy may surge at a 35% annualized rate in the third quarter and the nation may be close to a complete recovery by year-end. The Dow managed to close up 52 points, or 0.20%, and the S&P 500 saw out the day’s volatile session 0.30% firmer, while the Nasdaq adavanced 0.37%. On Friday, stock futures opened higher building on earlier gains. Dow futures up 148 points, the S&P 500 0.53% firmer while the Nasdaq futures are parting the same at 0.43% in the green. House Democrats are reportedly working on a $2.4 trillion stimulus plan, but a sum still well above the closer to $1 trillion proposal Senate Republicans had suggested they might accept.

ASIA
Asian markets cheered by a modest rally on Wall Street and rising hopes for fresh stimulus for the U.S. economy. Nikkei 225 edged up 0.55%, Australia gained 1.3%. Hong Kong’s Hang Seng gained 0.2 and the Shanghai Composite edged lower 0.34%. Tencent 0.10% firmer.
COMMODITIES
Gold’s decline gathered momentum after it slipped below its 50-day moving average, which technical traders can take as a signal to sell. The metal’s next key threshold, the 100-day moving average, should provide some resistance to falling prices. However, a drop below that level could trigger further selling. China’s crude oil imports from the U.S. dropped to 2.22m tons in August, down from a record 3.67m tons a month earlier, according to customs data published on Friday.

Wishing You All a Good Day Ahead, and a Blessed Weekend 😉