Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

Global Market Report - 9 November

Mark LaMonica, CFA  |  09 Nov 2020Text size  Decrease  Increase  |  
Email to Friend

Australia

Australian shares are set to slightly rise as the world digests US political developments over the weekend.

The Australian SPI 200 futures contract was up 15 points, or 0.2 per cent, to 6,202 points at 7:30am Sydney time on Monday, suggesting a slightly positive start to trading.

Major US stock indexes registered their biggest weekly gains since April this week, as investors bet Biden would win and Republicans would hold onto the Senate. That scenario would create a steadier hand in the Oval Office and a Congress that would check left-leaning impulses on taxes or regulations that pinch companies, investors said.

On Friday the Dow Jones Industrial Average fell .24 per cent, to 28,323.40, the S&P 500 fell .03 per cent, to 3,509.44 and the Nasdaq Composite added .04 per cent, to 11,895.23.

Locally, the S&P/ASX200 benchmark index closed higher by 50.6 points, or 0.82 per cent, to 6,190.2 on Friday. The All Ordinaries closed up 51 points, or 0.8 per cent, to 6,395. The ASX200 closed the US election week higher by 4.43 per cent.

Gold was up .03 per cent at $US1,951.26 an ounce; Brent oil was down 3.62 per cent to $US39.45 a barrel; Iron ore was up .71 per cent at $US117.52 a tonne.

Meanwhile, the Australian dollar was buying 72.66 US cents at 7.30am, down from 72.77 US cents on Friday’s open.

Asia

China’s blue-chip index last week posted its best week in three months, rising 4.1 per cent with growing prospects of a Joe Biden presidency in the United States, raising investors’ hopes of decreased tensions between Washington and Beijing.

On Friday, the blue-chip CSI300 index ended flat at 4,885.72, while the Shanghai Composite Index shed .24 per cent to 3,312.16.

At the close of trade Friday, the Hang Seng index was up .066 per cent at 25,712.97. The Hang Seng China Enterprises index was up .18 per cent to 10,497.80.

Japan’s Nikkei index on Friday ended at its highest level in 29 years, tracking strong moves in global equities, as investors hoped a gridlock in US Congress during a possible Joe Biden presidency would be able to stall major policy changes.

The benchmark Nikkei share average closed 0.91 per cent higher at 24,325.23. It marked the highest closing level since November 1991 when markets were in the midst of a crash after Japan’s bubble economy collapsed.

Europe

European stocks struggled for momentum on Friday after a strong rally this week as Italy and France posted a record number of coronavirus cases, while the counting of US election votes continued.

The pan-European STOXX 600 index was down 0.1 per cent by 0818 GMT after a five-day winning run that put the index on course for its best week since early April.

France, already under a national lockdown, set a daily record for COVID-19 cases for the second time in four days, and Italy also registered its highest ever daily tally on Thursday.
Also weighing on the markets, technology and healthcare heavyweights fell after strong gains this week.

North America

Investors and financial executives took a big sigh of relief on Saturday after major networks declared Democrat Joe Biden winner of the US presidential election, offering some certainty after days of conflicting reports about who might run the White House next term.

Major US stock indexes registered their biggest weekly gains since April this week, as investors bet Biden would win and Republicans would hold onto the Senate. That scenario would create a steadier hand in the Oval Office and a Congress that would check left-leaning impulses on taxes or regulations that pinch companies, investors said.

is a product manager, individual investor, Australia.

AAP logo

© 2020 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend