ASX Extends November Rally As US Shares Slip

By Glenn Dyer | More Articles by Glenn Dyer

The Aussie market is looking at a solid gain today after the overnight futures market on Friday ignored a lacklustre day on Wall Street.

Eurozone shares rose 0.5% on Friday, but the US S&P 500 fell 0.7% on the back of the dispute between the Fed and US Treasury in relation to the Fed’s emergency lending programs.

That should have been enough to frighten investors but it didn’t.

The coming week will be dominated by the Thanksgiving holiday on Thursday and then Black Friday.

It would seem local investors are still looking at value stocks like the banks (with big dividends in prospect) and are taking an increasingly rosy view of 2021 for the Australian economy.

Despite the weak US lead, ASX 200 futures rose 34 points, or 0.5%, pointing to a positive start to trade for the Australian share market later this morning.

Investors took their foot off the pedal on Friday and the ASX 200 eased 0.1% to finish at 6,539.2. The market still rose 2.1% across the week for a third straight week of gains and extend November’s rally to 10.3% so far.

The Dow fell 219.75 points, or 0.75%, to 29,263.48, the S&P 500 lost 24.33 points, or 0.68%, to 3,557.54 and the Nasdaq Composite dropped 49.74 points, or 0.42%, to 11,854.97.

The Dow fell 0.7% for the week, the S&P shed 0.8% but the Nasdaq rose 0.2% as investors maintained a fondness for some stay at home stocks like Netflix

Stay-at-home plays such as Zoom Video and Netflix, which have outperformed throughout the health crisis, helped curb the Nasdaq’s loss on Friday and over the week.

Over the week, US shares fell 0.8%, but Eurozone shares rose 1.4%, Japanese shares were up rose 0.6% and Chinese shares gained 1.8%. Australian shares rose another 2.1%.

Bond yields fell and oil, metal (especially copper), iron ore prices rose as did the $A against a weaker greenback.

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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