Weekly Market Wrap

ASX News Nov 9, 2020 / Reading Time: 2 mins
By Joshua Barker Reading Time: 2 mins

9th of November 2020

ASX Update

This week the ASX200 raced from approximately 5,900 to hit 6,200, but hit resistance here once again on the week of US elections. Our local market improved 4.4% to finish the week at 6,190 with US futures giving little indication on how the week would end globally. Further boosting sentiment was the Reserve Bank’s improved outlook for the Australian economy, with the central bank upgrading a range of forecasts including household consumption, unemployment and public demand.   

Top/Bottom Performers (in ASX200)

Top Gainers:

  • Tabcorp Holdings +24.6% (TAH.AX)
  • Flight Centre Travel Group +24.4% (FLT.AX)
  • Webjet Ltd +20.3% (WEB.AX)

Top Losers:

  • Pendal Group -8.0% (PDL.AX)
  • Fortescue Metals Group -4.7% (FMG.AX)
  • Treasury Wine Estates Ltd -4.6% (TWE.AX)

Global Market

US stocks finished the week off mixed but relatively flat after its 4-day strong rally, with its best weekly performance since April. For the week, the Dow climbed 6.9%, the S&P 500 rose 7.3%, and the Nasdaq jumped 9%, their best weekly performance since April.

Over the weekend, CNN officially announced Joe Biden as the winner of the US presidential election. However, Trump is not accepting it but the world doesn’t seem to care with many of the world leaders congratulating Biden and acknowledging him as the new leader of the free world. It is important to note that there is large delay between now and when he is actually in power – the 20th of January is the official date Biden is due to be sworn in. Until then Trump is in power and he has been heavily criticized regarding his handling on the virus. The US is currently going through its third wave, peaking higher than ever before with over 100,000 new daily cases. 

Play of the WeekSell Aussie Exporters to China?

Trade tensions between Australia and China will continue – this issue has been bubbling along in the background. China is currently threatening to ban further products; Treasury Wines was the most recent company to be impacted by the dispute. Any company that has large exposure to exporting to China could be next to experience adverse impacts and it is a risk not likely to be subdued anytime soon. 


Oil was volatile, losing 4.3% on Friday but still peeking out a 3.8% gain for the week.   

Silver added 8.9% this week to finish at $25.60. 

Gold increased on Friday again, finishing off on a 2-month high at $1,950 – a weekly gain of 4%.

Iron ore currently trades at $117.

Looking Ahead…

Next week is somewhat quieter than the week just passed but we will really see the market’s reaction to Biden coming into power. Here in Australia we have CBA releasing its quarterly update on Wednesday, as well as Fortescue, Woolworths and Wesfarmers holding their AGMs this week. On the data from; NAB’s business confidence and Westpac’s consumer confidence will give us a feel for how things are tracking as we continue to open.