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Morning Market Wrap: Amazon and Facebook reach all-time highs

21 May 2020
By
US Markets advanced overnight, more US states re-open.

The Dow Jones Industrial gained 1.52% as investors remained optimistic with the re-opening process continuing across the US. All 11 market sectors finished Wednesday in positive territory, led by Energy and Information Technology. The Nasdaq advanced the furthest out of the 3 major indexes closing up 2.08% and boosted strongly by Amazon and Facebook who hit their all-time highest levels at US$2,497.94 and US$229.97 respectively. The S&P500 finished the session 1.68% higher and is down 8.02% year-to-date. The minutes from the latest Federal Reserve meeting were released which expressed concerns in the short-medium term about the economic impacts of the pandemic. Tensions between the US and China appear to be growing with President Donald Trump continuing his rhetoric of China’s handling of the virus on Twitter.

ASX200 futures were up approximately 35 points this morning, indicating a positive start to the session. The Australian market showed further signs of bullish sentiment on Wednesday, finishing slightly positive after dipping close to 1% at the opening bell. The big 4 banks carried the index and offset losses from the mining sector. Fortescue Metals Group (FMG) closed at all time highs, finishing at $13.90. The rally came despite concerning retail sales figures from April revealing a monthly plunge of 17.9% which markets seem to have priced in already.

 

*Note: These prices are based on futures and/or CFD pricing and may therefore differ slightly from spot pricing.

Overnight the Australian dollar continued its rise against the USD, where it saw an increase from US$65.15c to US$66.00c. The Euro also recorded an increase with it rising from US$1.0915 to close at US$1.0980. Global oil prices continued their increase, with the price of Brent Crude Oil increasing by 3.2% to US$35.75 a barrel. This can largely be attributed to the US Energy Information Administration confirming that crude storage fell by 5 million barrels last week, signalling the reduction in supply was starting to take effect. Gold Spot price was trading at $1750 per ounce, which represents an increase of 0.5% on the previous day. Iron ore recorded a fall of 1.9% to US$96.10 per tonne.

 

This article was written by Charles Odontuyaa – Account Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3623.

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