Share, commodity and cryptocurrency markets fall overnight in a volatile US trade session. We take a look at what happened.
The post Share, commodity and cryptocurrency markets fall overnight appeared first on Motley Fool Australia. –
Last night’s US trading sessions saw multiple markets move lower simultaneously, presenting a red flag for the ASX this morning.
The volatile session saw multiple markets move lower overnight, triggering concerns that a wider selloff might be on our doorstep.
The S&P 500 Index (SP: .INX) lost as much as 2.8% in intraday trade, before recovering a little toward the end of the session. The overall loss after the late recovery sits at 1.29%, down around 40 points. This is a little less of a blow than the start of the session, however still low enough to cause concern with US investors.
Commodity markets were also caught in the storm, particularly gold and silver.
The price of gold fell as much as 3.5% in intraday trade, however, like the US stock market, pulled back toward the end. The net loss at the end of the session was 2.05%. However, this is still a significant move for the precious metal, meaning that its price went from US$1,950 down to US$1,911 per ounce in a single session. At one point, the price reached as low as US$1,882 per ounce.
Silver fared far worse that its higher priced cousin, falling as much as 11.5% during trade. This is a significant blow to the silver price, which is now trading at only US$25 per ounce. Silver investors have enjoyed rapid growth in the price recently, as the precious metal reached highs of almost US$30 per ounce only a few short weeks ago.
The price of bitcoin plummeted during last night’s activity. As the digital currency often moves in correlation with the gold and silver markets, this was not a surprise. However, it was still a blow to investors, with the price falling as much as 5.8% during the session. This leaves the price of bitcoin this morning at US$10,450, down from almost US $11,000 the previous day.
More broadly, the entire cryptocurrency market saw wide selloffs, losing close to a staggering US$20 billion overnight. It’s a big blow for the market which only recently had begun to recover from the falls on 3 September. Early in the month, a huge selloff saw the market lose a massive US$60 billion over 2 days.
Australian market – ASX
Locally, we are expecting a drop in the market this morning, following the volatile session last night.
While the S&P/ASX 200 Index (ASX: XJO) closed at 5,822 points yesterday in Monday’s trade, futures indicate a lower open today. Contracts such as the Australian 200 AUD contract (OANDA: AU200AUD) fell as much as 60 points overnight. Currently, futures are pointing at the 5,780 point mark as the market opens today, meaning a down gap of around 40 points could present.
It’s a rocky start to the week after a small loss yesterday on the ASX. Right now, it’s watch and wait for most Australian investors. Today will show whether we will see further declines or whether the market will see some short term stability in an attempt to find it’s feet.
These stocks could rocket in a Post-COVID world (FREE STOCK REPORT)
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
- Can the Harvey Norman (ASX:HVN) share price maintain its momentum?
- Up 79% this year, is the NextDC (ASX:NXT) share price the next Afterpay (ASX:APT)?
- Macquarie says ASX value shares will outperform growth stocks from here
- ASX 200 drops another 0.8%, Magellan (ASX:MFG) reveals a large investment
- 2 reliable blue chip ASX 200 shares to buy today
Motley Fool contributor glennleese has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Share, commodity and cryptocurrency markets fall overnight appeared first on Motley Fool Australia.