Best Quarter for stocks in DECADES!

MARKETS

US stock markets finished the quarter with a flourish, finishing higher on the day after a mixed close to European indices but a mostly positive day on Asian markets. The US dollar gave up early gains to turn distinctly lower after daily fixings added to volatility at quarter-end. Gold reached a 7-year high with futures crossing $1800 per oz, while oil prices slipped 1%.

GURU WISDOM

“The most important organ in the body as far as the stock market is concerned is the guts, not the head. Anyone can acquire the know-how for analysing stocks.” – Peter Lynch

BEST Quarter

Few would have believed at the height of the panic in March that stock markets were about to have one of the best quarters ever. It was three back-to-back months of gains in US company shares. The Dow Jones had its best quarter since 1987, the S&P 500 had its best quarter in 22 years (since 1998) and the Nasdaq had its best quarter since 2001. On a more global spectrum, Chinese stocks (CSI 300) are positive for the year and the MSCI All-Country index is within 10% of all-time highs.

GOLD: Over $1800

Spot gold prices reached a new 7-year high of $1,785 per oz while gold futures topped $1800 per oz. The break past the key round figure has heightened calls for new record highs and break above $2000 per oz for the first time. It has been the best quarter for gold since early 2016. Fed Chair Jerome Powell testified at Congress today and although he said nothing extraordinary, the conclusion in markets is that ongoing money-printing will continue to benefit gold prices.

AUD: Melbourne

A 4-week lockdown in 10 postcodes within the Australian city of Melbourne will begin at midnight on Wednesday. The Australian dollar traded lower on the news, eventually rebounding versus the dollar but holding near earlier lows versus other currencies like the euro. It’s a setback for the reopening in Australia, which has been one of the countries with the best results for containing the virus outbreak. 

Coming Next…

FOMC minutes alongside US ADP employment data will take centre stage for economic data on Wednesday with the China Caixin Manufacturing PMI setting the tone early on.