On Thursday, US jobs data was released, with the numbers coming in better than expected, which provided positive momentum for US shares.
To the specifics, and non-farm payrolls rose by a record 4.8 million in the month of June, substantially above what surveyed economists were expecting at 3.23 million. More so, the jobless rate, which was forecast to decline to 12.5%, dropped from 13.3% to 11.1%. It was not only jobs data released, with US factory orders also released for the month of May, showing an increase by 8%, while the trade deficit increased by US$4.8 billion to US$54.6 billion.
All in all, the data released provided a positive backdrop to the beginning of the trading day in the US, with many US equities gapping up on the open. The S&P500 opened up around 28 points higher at 3143.64, traded to a high of 3165.81, before selling off into the close, to finish the day at 3130.01. Even though the index failed to hold onto the gains on the open, for the day, the S&P500 added 0.45%. The Nasdaq Composite closed half a percent higher, while the Dow Jones Industrials added 92.39 points (+0.36%) to close at 25,827.36. The selloff into the close was partly attributed to news surrounded the spread of Covid-19 in the US, particularly in Florida which reported over 10,000 new cases for the day. Quite extraordinary when one considers this daily figure is more than the entire number of confirmed cases in Australia since the pandemic began.
It has been a strong week for the ASX200 so far, with Thursday representing the third straight positive session in a row, with the market closing 1.66% higher at 6032.71. From a technical perspective, the market has closed above previous resistance at 6000, which had provided a barrier over the past 2-3 weeks. For upward momentum to remain, we would not want to see prices close back below this level. ASX SPI200 futures are up 35 points in overnight trading, pointing towards further gains on market open on Friday.
*Note: These prices are based on futures and/or CFD pricing and may therefore differ slightly from spot pricing.
To commodity markets, and base metal prices were largely firmer, with copper gaining 0.3%, on reports that BHP may scale back production from some of its mines in South America due to the pandemic. Nickel prices gained 0.8% while lead was up 0.6%. Spot gold prices recovered from earlier losses to close up 0.28% at US$1775.04 an oz, while crude oil gained US$0.83 (+2.1%) to finish at US$40.65 a barrel.
This article was written by Oliver Gordon – Account Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3623.
Rivkin does not ever provide financial advice. Please consider your own circumstances before purchasing any of our products or acting on our general advice, for any Rivkin product or recommendation.
We are glad you liked it
For your convenience, this will appear under your Saved articles in the top menu.