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Global Market Report - 18 November

Emma Rapaport  |  18 Nov 2020Text size  Decrease  Increase  |  
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Australia

Australian shares are set to edge higher as global investors hit pause in the wake of the second vaccine enthused rally in as many weeks.

The Australian SPI 200 futures were up 19 points or 0.3 per cent to 6,520 near 7am, suggesting a positive start to trading.

US stocks retreated from record closing highs on Tuesday, ending lower as surging covid-19 cases, the growing threat of a fresh round of economic lockdowns and weak retail sales data dampened the euphoria caused by potential vaccine breakthroughs.

The Dow Jones Industrial Average fell 167.09 points, or 0.56 per cent, to 29,783.35, the S&P 500 lost 17.38 points, or 0.48 per cent, to 3,609.53 and the Nasdaq Composite dropped 24.79 points, or 0.21 per cent, to 11,899.34.

Locally, investors had a mostly glitch-free day on the Australian share market and the indices closed slightly higher after enthusiasm over the development of a coronavirus vaccine.

The S&P/ASX200 benchmark index closed up 13.9 points, or 0.21 per cent, to 6,498.2 on Tuesday.

The All Ordinaries gained 10.8 points, or 0.16 per cent, to 6,697.8.

Trade went smoothly for most investors, after the botched introduction of a new system limited the Monday session to 24 minutes.

However, some glitches appear to remain.

The ASX at 1158 AEDT said it detected data issues with its Centre Point system, used by banks and other institutions to trade shares.

Prices would be based on the ASX lit best bid and offer until further notice, the market operator said.

Energy gained the most of the sectors, higher by 3.43 per cent. Financials was next, up 1.39 per cent.

Gold was down 0.2 per cent at $US1,885.854 an ounce; Brent oil was down 1.1 per cent per cent to $US43.35 a barrel; Iron ore was up 1.1 per cent at $US125.44 a tonne.

Meanwhile, the Australian dollar was buying 73.03 US cents overnight, down 0.2 per cent from Tuesday's close.

Asia

China stocks ended lower on Tuesday, weighed by losses in healthcare stocks on concerns over lofty valuations, while more bond defaults hit sentiment.

The blue-chip CSI300 index fell 0.2 per cent, to 4,894.79, while the Shanghai Composite Index slipped 0.2 per cent to 3,339.90 points.

Falling the most, the CSI300 healthcare index slid 2.7 per cent. Transport firms, in particular shipping and port firms, climbed as news of another promising coronavirus vaccine bolstered sentiment.

Hong Kong stocks ended marginally higher on Tuesday, with gains by shares of energy firms on positive developments around a second possible coronavirus vaccine offseting losses by tech players due to fears of an escalation in Sino-US tensions.

At the close of trade, the Hang Seng index was up 33.42 points or 0.13 per cent at 26,415.09. The Hang Seng China Enterprises index fell 0.27 per cent to 10,550.2.

round the region, MSCI’s Asia ex-Japan stock index was firmer by 1.27 per cent, while Japan’s Nikkei index closed up 0.42 per cent.

Europe

European stocks slipped from eight-month highs on Tuesday, as tighter coronavirus restrictions across the continent raised doubts about a swift economic rebound and countered optimism about a covid-19 vaccine.

The pan-European STOXX 600 ended 0.2 per cent lower. The index jumped over 1 per cent to close at its highest level since late February on Monday following positive data about drugmaker Moderna's covid-19 vaccine.

Many European countries have imposed curbs to fight a resurgence in virus cases. Sweden moved to restrict the size of public gatherings and a British medical adviser suggested strengthening the three-tier system of restrictions when the full lockdown in England ends.

North America

US stocks retreated from record closing highs on Tuesday, ending lower as surging covid-19 cases, the growing threat of a fresh round of economic lockdowns and weak retail sales data dampened the euphoria caused by potential vaccine breakthroughs.

The sell-off was a reversal of Monday’s rally, in which the blue-chip Dow reached its first record closing high since before the pandemic.

The Nasdaq’s loss was capped by surging Tesla Inc shares, and small cap stocks outperformed, with the Russell 2000 reaching a new record closing high.

Monday’s rally was prompted by Moderna Inc’s announcement that its covid-19 vaccine candidate appears to be 94.5 per cent effective in preventing infection.

But a recent surge in new coronavirus cases across the United States has led several governors to enact new restrictions to prevent the disease from spiraling out of control.

The Dow Jones Industrial Average fell 167.09 points, or 0.56 per cent, to 29,783.35, the S&P 500 lost 17.38 points, or 0.48 per cent, to 3,609.53 and the Nasdaq Composite dropped 24.79 points, or 0.21 per cent, to 11,899.34.

Among 11 major sectors of the S&P 500, only energy and real estate closed in the black, with utilities and healthcare stocks faring the worst.

is an editor for Morningstar.com.au

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