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 - 17 November

Emma Rapaport  |  17 Nov 2020Text size  Decrease  Increase  |  
Email to Friend

Australia

Australian shares are set to open higher following a rally in global equities, with the Dow rising to a record as it brought the 30,000 point mark in sight on news of a potential second vaccine from Moderna (MRNA).

The Australian SPI 200 futures were up 3 points or 0.1 per cent to 6,489 near 7.40am Sydney-time, suggesting a positive start to trading.

The S&P 500 and Dow Jones industrial average notched record closing highs on Monday as news of another promising coronavirus vaccine fanned hopes of eradicating covid-19, while spiking infections and new shutdowns threatened to hobble a recovery from the pandemic recession.

All three major US stock indexes advanced and with its new closing record, the blue-chip Dow is the last of the three to reclaim levels reached in February, before lockdowns sent the markets into free-fall.

The Dow Jones Industrial Average rose 470.63 points, or 1.6 per cent, to 29,950.44; the S&P 500 gained 41.76 points, or 1.16 per cent, at 3,626.91; and the Nasdaq Composite added 94.84 points, or 0.8 per cent, at 11,924.13.

Locally, Australia's share market finished higher but trade was suspended for most of the day after the introduction of a new trading system did not go as planned.

The S&P/ASX200 benchmark index closed up 79.0 points, or 1.23 per cent, to 6,484.3 on Monday.

The ASX paused trade at 1024 AEDT and said there were issues with market data.

This was later revealed to be a software issue with the trading of multiple securities in a single order, called combination trading, which created inaccurate market data.

The glitch was part of a new trading platform for shares, introduced on Monday.

The market operator said it tested the system for more than a year.

Trade did not resume on Monday but the ASX said it would resolve the issue overnight and trade would resume on Tuesday.

All sectors finished higher except for information technology.

Gold was flat at $US1,889.34 an ounce; Brent oil was up 2.7 per cent per cent to $US43.94 a barrel; Iron ore was up 1.4 per cent at $US124.07 a tonne.

Meanwhile, the Australian dollar was buying 73.14 US cents overnight, up 0.6 per cent from Monday's close.

Asia

China stocks ended higher on Monday after upbeat data pointed to a continued recovery in the world’s second-largest economy, with the establishment of a China-backed trade bloc aiding sentiment.

The blue-chip CSI300 index rose 1.0 per cent to 4,904.17, while the Shanghai Composite Index gained 1.1 per cent to 3,346.97 points.

Investors also welcomed the establishment of a China-backed trade bloc that excludes the United States.

Fifteen Asia-Pacific economies formed the world’s largest free trade bloc on Sunday, which had left a rival Asia-Pacific grouping under President Donald Trump.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.45 per cent, while Japan’s Nikkei index closed up 2.05 per cent.

Hong Kong stocks closed higher on Monday as upbeat Chinese data pointed to a continued recovery in the world’s second-largest economy, with sentiment aided by the establishment of a China-backed trade bloc.

The Hang Seng index ended 224.81 points or 0.86 per cent higher at 26,381.67. The Hang Seng China Enterprises index rose 0.32 per cent to 10,578.94.

Europe

European shares ended at a more-than-eight-month high on Monday as positive data from Moderna Inc’s covid-19 vaccine boosted investor confidence in a faster pace of economic revival, while signs of recovery in Asia also helped.

Moderna became the second drugmaker in a week to report high efficacy for an experimental coronavirus vaccine after Pfizer made a similar announcement on 9 November.

The pan-European STOXX 600 ended 1.3 per cent higher with oil stocks leading gains on the back of a 4 per cent jump in oil prices, while banks rose 3.1 per cent, led by Spanish lender BBVA.

North America

The S&P 500 and Dow Jones industrial average notched record closing highs on Monday as news of another promising coronavirus vaccine fanned hopes of eradicating covid-19, while spiking infections and new shutdowns threatened to hobble a recovery from the pandemic recession.

All three major US stock indexes advanced and with its new closing record, the blue-chip Dow is the last of the three to reclaim levels reached in February, before lockdowns sent the markets into free-fall.

The Dow Jones Industrial Average rose 470.63 points, or 1.6 per cent, to 29,950.44; the S&P 500 gained 41.76 points, or 1.16 per cent, at 3,626.91; and the Nasdaq Composite added 94.84 points, or 0.8 per cent, at 11,924.13.

Moderna Inc said its experimental covid-19 vaccine was 94.5 per cent effective in preventing infection based on interim late-state data. It was the second drugmaker in as many weeks, after Pfizer Inc, to announce promising trial data in the development of a vaccine to defeat the pandemic. Its shares gained 9.6 per cent on the day.

Combined, pending further data and regulatory review, the United States could have as many as 60 million emergency doses available this year.

Travel-related stocks, which have been clobbered by restrictions to contain the pandemic’s spread, were in demand.

But covid-19 continued its US rampage, with cases surging past 11 million and record infections in 40 states, prompting states to tighten social distancing mandates.

is an editor for Morningstar.com.au

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