OVERNIGHT MARKET SNAPSHOT (7:15am AEST)-
- SPI200 (Sep) overnight futures up 9 pts to 6126
- SP500 down 1.16 pts to 2923.43
- NASDAQ down 37.76 pts to 7999.55
- FTSE100 down 21.12 pts to 7474.55
- DAX30 down 51.45 pts to 12287.58
- GOLD futures (Dec) up $15.60 to $1207.30 an ounce
- COPPER futures (Comex Dec) up $0.013 to $2.800 a pound
- OIL futures (Nymex Nov) down $0.24 to $75.06 a barrel
- CRB Index up 2.18 pts at 199.97
- AUDUSD trading at 0.7188
- EURUSD trading at 1.1549
- GBPUSD trading at 1.2981
- USDJPY trading at 113.6500
The US broader Index was lower although the DOW bucked the global trend to continue into new all time highs. The DOW continues to benefit from the US/Canada deal and speculation that a deal with China may also be on the cards. Powell was very positive in the health of the economy in his speech and says that he continues to see low unemployment and modest inflation in the near future. The DOW was a shining light closing up 122.73 pts or 0.46% while the broader SP500 was down 0.04% and the Nasdaq ended down 0.47%. In Europe share Indexes were lower as Italian debt and Brexit fears weigh on investor sentiment.
Italian stocks dropped and bond yields hit multi year highs after an Italian lawmaker made anti-euro comments saying that all their problems could be fixed by having its own currency. Traders didn’t respond well and hammered shares but later recovered once the statement was essentially retracted.
The USD index continued to press higher getting a boost from a falling Euro and safe haven buying on emerging market worries. The GBP continued to head lower as conflict over Brexit plans escalated. The AUD was lower as the USD continued to pressure price and as the RBA held interest rates steady with no change to their stance in sight. The EUR continued lower as Italy’s share market and bonds came under fire over debt problems. Italy is at logger heads with the EU and in a ‘war of words’ as they plan to lift the budget deficit to 2.4% of GDP to the EU’s dislike.
Gold had a big night to close up strong as buyers looked to the precious metal for a safe haven as global shares pushed lower. Copper also gained while Oil lost some ground as recent buyers looked to lock in some gains ahead of US inventory data tonight which is expected to be stronger.
Cryptocurrencies gave up some recent gains with Bitcoin trading at $6576.7 down 0.29% and Ethereum at $226.84 down 1.78% while Ripple hit hardest and is current trading at $0.54672 down 7.30%.
Locally, the ASX200 headed south from the open yesterday and never looked back to finish down 46.1 points. The RBA kept interest rates on hold as expected and the big four banks continued to feel the heat from the Royal Commission. One point that may reduce the pressure on banks is that the country’s Treasurer called on any new measures taken against the banks to not hurt the economy or lead to tighter lending. Gold stocks were lower although we may see a bounce today after a solid rally in Gold overnight in terms of the Aussie Dollar. Declining stocks outnumbered rising ones by 696 to 464 and 381 ended unchanged.
The ASX200 is expected to open up 5/10 points but may continue to find weakness as global markets are under pressure although a rally in commodities may help buoy the index.
ECONOMIC DATA OUT TODAY (AEST) –
AUD Building Approvals 11:30am
EUR German Bank Holiday
EUR Final Services PMI 6pm
GBP Services PMI 6:30pm
USD FOMC Member Barkin Speaks 10:05pm
USD ADP Non-Farm Employment Change 10:15pm
USD ISM Non-Manufacturing PMI 12am
USD Crude Oil Inventories 12:30am
USD Fed Chair Powell Speaks 6am
SPI200 INTRADAY LEVELS TO WATCH –
