Trump’s positive test is a negative for markets
WHAT MATTERED TODAY
Momentum out of yesterday’s fading strength flowed through to today’s session as equities gave up all of the prior day’s gain early on. Ahead of lunch, the market was trading back at Wednesday’s close, giving back all of what was a 100pt gain through much of yesterday’s trade. Energy was a significant drag on the index with concerns around a slower than expected recovery in demand. The big news came just prior to 3PM this afternoon when President Trump tweeted that he and First Lady Melania had tested positive for coronavirus following earlier reports a close Trump aide had contracted the virus. Selling picked up speed on the news, dragging the index below 5800 again for just the second time since June. Just a month out from the US election, today’s news throws even more uncertainty at an already fragile market.
All sectors finished lower to end the week – IT has outperformed all week and did so again today, though still closed -0.37%. Staples were the most supported into the late session sell off. Energy was hit more than 4%, and materials a distant second last at -2.13%. on a stock level, Mesoblast (MSB), -37.20%, was the worst hit of the day after it was announced the FDA would require the bio-tech to conduct another trial of the company’s graft vs host treatment – an issue they thought was past them following an advisory committee recommendation we wrote about back in August.
Reminder, no weekend report and no reports on Monday with the long weekend.
Overall, the ASX 200 closed down -81pts / -1.39% to 5791 today. US Futures are lower, with Dow Futures off -474pts/-1.71%.
ASX 200 Chart
ASX 200 Chart
CATHCING MY EYE
Sectors this week
Stocks this week
BROKER MOVES
· Hub24 Cut to Underperform at Credit Suisse; PT A$16.30
· Platinum Asset Raised to Neutral at Credit Suisse; PT A$3.30
· SeaLink Cut to Neutral at Macquarie; PT A$5.37
· Reliance Worldwide Cut to Neutral at JPMorgan; PT A$4.20
· Reliance Worldwide Cut to Underweight at Morgan Stanley; PT A$4
· Alumina Raised to Buy at Citi
· Corporate Travel Cut to Accumulate at Ord Minnett; PT A$19.04
OUR CALLS
No changes today
Have a great long weekend,
James, Harry and the Market Matters team
Disclosure
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