After ending about 2% higher last week, taking the share market’s COVID-19 recovery to 20% off the market bottom in March, the S&P/ASX 200 (ASX: XJO) opened slightly lower today.
Here are three things investors need to know this morning:
1. The NASDAQ 100 is now positive in 2020
US markets rallied strongly to finish the week with the tech-focused NASDAQ 100 (INDEXNASDAQ: NDX) now in positive territory for the year. The key driver has been an apparent slowing of COVID-19 infection rates across the US and Europe. Investors seem to believe the one-off recessions are already priced in and that business, as usual, maybe closer than we think.
2. Amazon.com hit an all-time high
Friday saw a diverse range of companies reporting, both in the US and Australia.
Amid the most market carnage since the Great Depression, Amazon.com Inc (NASDAQ: AMZN) hit all-time highs as those stuck at home relied upon its home delivery and diverse range of products. It’s now a $1.2 trillion company and its likely this period has shown many people how much easier shopping online may actually be.
3. China’s GDP is getting whacked
Chinese GDP collapsed in the third quarter, falling -6.8%, with the majority of the massive economy on hold for as long as two months. This is the sharpest fall since 1992 and was driven by an incredible 19% drop in retail sales.
The slowdown hasn’t seemed to hamper demand for iron ore, with Rio Tinto reporting a 5% increase in exports. Closer to home, CHEP pallet distributor Brambles Limited (ASX: BXB) reported revenue in line with expectations, noting the spike in grocery volumes as the shutdowns began.
This article first appeared in The Inside Investor.
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