Advanced Share Registry : Market News 5 Aug 2020

Factory orders beat expectations in the June survey, growing 6.2% with evidence pointing to further gains in July. While the headline reads well, factory orders are still 10% lower YoY. Similarly, the manufacturing sector grew in Julys PMI reading to 54.2 per cent according to the Institue for Supply Management but it doesn't measure production quantities or how much has improved.

That data didn't turn markets up though but rather a focus on Energy as the potential for the oil price war between Saudi Arabia and Russia easing, fed expectations for higher prices to follow. A Trump tweet once again kicked off speculation that talks between the two nations could result in spigots slowing down their furious pace of supply. West Texas-grade crude oil rose past $41 a barrel for its best performance in two weeks. Investors also stayed focused on further fiscal stimulus winding its way through partisan gamesmanship with the S&P 500 landing less than 3% from pre-pandemic highs. If a solution isn't found by Friday, then further pandemic paychecks will be delayed by many weeks despite later agreements. That remains the most visible risk to markets as the willingness to look 'forward' to justify these high EPS would force optimists to extend their recovery estimate and discount the market accordingly. The Dems and GOP agree that they're nowhere near consensus but agreed to an end of week dead ine. Make of that what you will, but the $2.2 trillion in stimulus passed in March is depleted, just as job losses pick up from the latest coronavirus case surge.

Walt Disney Co. posted a near $5 billion loss for the quarter, its first loss since 2001. With most Parks shut, the pandemic also eliminated movie distribution and live sports events crushed. The Disney+ streaming service was the only performer as it signed 60 million+.

The much mooted, debated and traded Phase One deal is edging toward extinction as the two Superpowers assess the terms in light of their collapsed relations. None the less, the parties will meet around Aug. 15 per the agreement to review subsequent events. Trump's threat to ban Chinese music video app TikTok from the U.S. markets can only add to tensions. Microsoft has expressed interest in buying the platform in a deal Chinese authorities have labelled a 'smash and grab' deal.

The U.S. dollars worst monthly performance in 10-years drove gold 1.7% higher to US$2,021 an ounce as real yields exploration of negative territory forged ahead. Slowing infections in the Sunbelt was welcome news as California, Florida and Arizona all reported declines, but Texas found higher positivity rates for a third straight day. Germany, Poland and the Netherlands also rose, highlighting the constant nature of this battle that won't end until a global distribution of a vaccine is delivered. Industry analysts see 2022 as a best-case scenario for this perfect outcome as global cases top 18.3 million, and 696,000 deaths yesterday. After the largest worldwide increase in new cases yesterday, The World Health Organisation cautioned, that a 'silver bullet' to defeat the coronavirus pandemic may never be found.

US Dow Jones	26828.47	164.07	+0.6%
US S&P500	3306.51	+11.9	+0.4%
US Nasdaq	10941.17	+38.369	+0.4%
UK FTSE	6036.00	+3.15	+0.1%
German Dax	12600.87	-46.11	-0.4%
Gold Futures ($US/oz)	2021.00	+34.70	+1.7%
Spot Iron Ore ($US/t)	118.	+1.65	+1.4%

Europes STOXX 600 ended slightly lower led by bigger-falls than expected in sales from the world's largest spirit maker Diageo whose stock fell 5.6%. That was offset by energy giant BP's 6.5% rise despite its US$6.7 billion quarterly loss. German industrial giant Bayer fell 2.4% after a $10.9 billion settlement for U.S. lawsuits during the year delivered a 9.5 billion euro loss for the second quarter. Our markets have opened down 50 points as Queensland shuts its NSW borders and Virgin Australia cut three thousand jobs as part of its restructuring post-rescue from Bain capital.

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