OVERNIGHT MARKET SNAPSHOT (7:25am AEDT)-
- SPI200 (Sep) overnight futures down 5 pts to 5767
- SP500 up 41.38 pts to 2682.63
- NASDAQ up 111.36 pts to 7161.65
- FTSE100 up 9.53 pts to 7035.85
- DAX30 down 48.09 pts to 11287.39
- GOLD futures (Dec) down $2.30 to $1225.50 an ounce
- COPPER futures (Comex Dec) down $0.0690 to $2.6715 a pound
- OIL futures (Nymex Dec) down $0.88 to $66.16 a barrel
- CRB Index down 1.66 pts at 191.76
- AUDUSD trading at 0.7104
- EURUSD trading at 1.1345
- GBPUSD trading at 1.2708
- USDJPY trading at 112.9800
The US rallied to claw back some of the recent losses after a strong lead into the overnight session from Asia. Buyers jumped into the market after Trump said he thought there could be an agreement with China on trade, but warned he had billions of dollars worth of new tariffs ready if a deal was not possible. The DOW closed up 431.72 pts or 1.77% while the broader SP500 was up 1.57% and the Nasdaq also finished up 1.58%. In Europe shares were mixed with the DAX finishing lower around 0.42% while the FTSE was higher 0.14%. Europe could not close in the green as earnings disappointed and on continued concerns of emerging markets, in particular Italy.
Italian data showed that the economy had ground to a halt in the third quarter which saw renewed pressure on government debt in the bond market.
The USD continued to edge higher after starting the session up and holding onto gains into the close as emerging markets concerns helped buoy the USD. Some of the USD strength may also be due to banks and institutions funding needs as they re-balance dollar denominated liabilities and assets on their balance sheets. The EUR came under pressure from political concerns after German Chancellor Angela Merkel said that she will be stepping down. The GBP was also lower on continued Brexit concern while the AUD headed south as commodity indexes continued to come under pressure.
Gold again was lower pressured by a rising USD and as safe haven buyers disappeared. Oil continued to come under fire as traders remain jittery on global markets and demand for the commodity. Copper fell on USD pressure and also as traders try to assess the latest news on US/China trade relations.
Cryptocurrencies were mixed overnight but held up okay with Bitcoin trading at $6328.1 up 0.08% while Ethereum is at $196.10 down 0.05% and Ripple at $0.44520 up 1.04%.
Locally, the ASX200 fell below the 5700 level on the open to sucker in a few sellers and then rallied hard into the close to finish up 76.9 points. China was the catalyst for the bulls as Chinese shares rose on fresh attempts by Beijing to stabilize its markets. China’s regulator said that they would encourage share buybacks and mergers by listed companies and would lift market liquidity to try and put a base in the market. Also, Trump reportedly predicted a ‘great deal’ with China which also helped lift the bulls enthusiasm. Materials and financials supported the rally as advancing stocks outnumbered falling ones by 625 to 544 and 351 ended unchanged.
The ASX200 is expected to open flat after the rally into the close yesterday could not continue into the overnight sessions. The SPI200 saw some profit taking through the European session but then managed to build a base through the US which may lead to another positive move today.
ECONOMIC DATA OUT TODAY (AEST) –
JPY Prelim Industrial Production
AUD CPI Data and Private Sector Credit 11:30am
CNY Manufacturing and Non-Manufacturing PMI 12pm
JPY BOJ Monetary Policy Statement, BOJ Rate Statement and Outlook Report Tentative
EUR CPI Flash Estimate and Unemployment Rate 9pm
USD ADP Non-Farm Employment Change 11:15pm
CAD GDP 11:30pm
USD Crude Oil Inventories 1:30am
CHF SNB Chairman Jordan Speaks 4:15am
CAD BOC Gov Poloz Speaks 7:15am
SPI200 INTRADAY LEVELS TO WATCH –
