The Australian market is looking at a solid gain today after the overnight futures market ignored a lackluster day on Wall Street on Friday.
Eurozone stocks rose 0.5% on Friday, but the US S&P 500 fell 0.7% amid the dispute between the Fed and the US Treasury over the Fed’s emergency lending programs .
That should have been enough to scare investors off, but it isn’t.
The week ahead will be dominated by the Thanksgiving holiday on Thursday and then Black Friday.
It looks like local investors are still interested in value stocks like banks (with big dividends in the offing) and are taking an increasingly bullish view of 2021 for the Australian economy.
Despite the weak US lead, ASX 200 futures were up 34 points, or 0.5%, indicating a positive start to trading for the Australian stock market later this morning.
Investors pulled their foot off the pedal Friday and the ASX 200 fell 0.1% to end at 6,539.2. The market rose another 2.1% on the week for a third straight week of gains and extended the November rally to 10.3% so far.
The Dow Jones fell 219.75 points, or 0.75%, to 29,263.48, the S&P 500 fell 24.33 points, or 0.68%, to 3,557.54 and the Nasdaq Composite fell. 49.74 points, or 0.42%, at 11,854.97.
The Dow Jones fell 0.7% for the week, the S&P lost 0.8% but the Nasdaq rose 0.2% as investors maintained a leaning towards some remaining stocks like Netflix.
Home theater plays such as Zoom Video and Netflix, which outperformed throughout the health crisis, helped curb the loss of the Nasdaq on Friday and throughout the week.
Over the week, US stocks fell 0.8%, but Eurozone stocks rose 1.4%, Japanese stocks rose 0.6%, and Chinese stocks gained 1.8% . Australian stocks rose another 2.1%.
Bond yields fell and the prices of oil, metal (especially copper) and iron ore rose, as did the A dollar against a weaker greenback.