Global Fundamental Analysis 24/04/2020

Australian Market

US Market

U.S. stocks pared gains as investors digested the latest coronavirus news and the Labor Department said the weekly number of Americans applying for jobless benefits eased slightly.
The Dow Jones Industrial Average rose 39 points, or 0.2%, giving up much of the 400 points they had gained earlier in the session. The S&P 500 slipped less than 0.1%, and Nasdaq Composite was essentially flat as of the 4 p.m. close of trading in New York.

All three indexes are on course for modest weekly losses, following a sharp selloff to start the week when turmoil in the oil market pulled U.S. crude prices negative for the first time ever.  Stocks lost some of their momentum in afternoon trading on reports that cast doubt on the effectiveness of remdesivir, the Gilead Sciences drug under investigation as a potential treatment for Covid-19. Gilead shares dropped 4%.

Commodities

Gold futures finished higher, with tightening supplies for the commodity, worries about the economic impact of the COVID-19 pandemic, and rising tensions in the Middle East lifting bullion prices for a second session. The precious metal held on to its price gains after weekly U.S. labor-market data showed another 4.4 million people filed for unemployment benefits for the week ended April 18, bringing the total claims over the past month to 26 million since the coronavirus pandemic laid siege to the economy.

Gold for June delivery on Comex rose $7.10, or 0.4%, to settle at $1,745.40 an ounce. Prices had traded as high as $1,764.20, but still saw the highest finish for a most-active contract since April 14 after settling Wednesday up 3%, according to FactSet data.

Oil Futures

U.S. crude-oil futures for delivery in June rose 20% to $16.50 a barrel. The benchmark started the year above $60 and is still near its lowest level in more than two decades. Brent crude futures, used to set prices for oil throughout global energy markets, rose 4.7% to $21.33 a barrel.

Forex

The WSJ Dollar Index was recently up 0.04% at 94.41.  The U.S. dollar strengthened 0.3% against the euro Markets are also waiting for more details on an EU crisis recovery fund that will likely exceed EUR1 trillion being debated today. The dollar weakened 0.2% against the yen.

European Markets

European sharemarkets closed firmer on Thursday. Higher oil prices boosted the energy sector (up 3%). Encouraging earnings from Credit Suisse (shares up 2.3%) boosted the banks sector. But shares in Volvo lost 5.6% after announcing a stalling in truck orders. Shares in Unilever fell by 1.7% after rescinding its 2020
earnings forecast.

The pan-European STOXX 600 rose by 0.9%. The German Dax index gained 1.0%. The UK FTSE index closed higher by 1.0%. In London trade, shares of Rio Tinto rose by 0.4% and BHP shares closed higher by 3.2%

Asian Markets

Earlier in the day in Asia, Japanese shares extended early gains to close higher as the crude-oil selloff eased, with the Nikkei Stock Average rising 1.5% to 19429.44.
Mining stocks were among the best performers. South Korea’s benchmark Kospi rose 1.0% to close at 1914.73, led by energy and shipbuilding stocks. A rebound in oil prices after sharp declines earlier in the week supported sentiment, analysts said. Mixed corporate earnings swayed markets.

Hong Kong’s Hang Seng Index closed 0.4% higher at 23977.32, in line with other Asian indexes that posted mild gains as oil prices stabilized from sharp declines earlier this week. Stocks on the HSI were a mixed bag, and most ended little changed. Singapore’s benchmark FTSE Straits Times Index closed 0.3% lower at 2542.37 as conglomerates weighed.