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OVERNIGHT MARKET SNAPSHOT (As at 7:15am AEST)
- SPI200 (Mar) overnight futures up 21 pts to 6206
- SP500 up 0.11 pts to 2888.32
- NASDAQ down 16.89 pts to 7947.36
- Dow Jones down 14.11 pts to 26,143.05
- FTSE100 down 3.96 pts to 7417.95
- DAX30 up 29.29 pts to 11,935.20
- GOLD futures US Session (June) down $18.10 to $1295.80 an ounce
- COPPER futures US Session (Comex May) down $0.0320 to $2.8940 a pound
- OIL futures US Session (Nymex May) down $0.90 to $63.71 a barrel
- CRB Index down 2.34 points to 187.33
- AUDUSD trading at 0.7125
- EURUSD trading at 1.1257
- GBPUSD trading at 1.3055
- USDJPY trading at 111.6500
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The US had another muted session as traders play the waiting game ahead of bank earnings in tonights session. The last few trading sessions have seen the major indexes stuck in a rut generally moving sideways with no market moving news to push the action either way with progress on US/China trade already factored in. Traders seem content to await earnings to see if consensus for weaker reports are correct as correlation in asset classes has fallen which suggests that traders are watching stock fundamentals. US Bond yields were higher to ease pressure on an inverted yield curve after stronger than expected data came out. The DOW closed down 0.05% while the broader SP500 was up 0.01% and the Nasdaq also closed down 0.21%. In Europe, a delay for a Brexit deal is official which saw support for stocks across the board. The FTSE100 lagged as several stocks went ex-div.
The USD rallied thanks to Producer price data increasing the most in five months and weekly jobless claims falling although the rally started earlier as sellers were squeezed out of the action ahead of the data release. The rally was broad based and pressured USD based currency crosses lower. The EUR fell on the USD strength and after the ECB showed concern for the EU region although the French Central bank boss said that the euro zone was “not short of ammunition” to accelerate growth. The GBP also fell along with the AUD which came under further pressure from easing commodity prices. The USDJPY turned a corner from recent selling to push back up through 111.000 towards resistance around 111.800.
Gold had a night to forget with a 1.5% drop thanks to strength into the USD. Bulls were squeezed out of the action as US bond yields gained and inflationary data and jobless claims showed a buoyant economy. Oil fell in what seems to be a delayed reaction to US crude oil inventories coming in higher than expected. Also, a stronger USD pressured the commodity lower and buyers took the opportunity to take some profit off the table from the recent run up. Copper also came under pressure along with other commodities to move lower on USD strength.
Cryptocurrencies continued backed off overnight as prices fell across the board. Bitcoin is currently trading at $5023.1 down 5.15% while Ethereum is at $163.96 down 7.13% and Ripple is trading at $0.32605 down 8.13%.
The ASX200 was weak from the open yesterday to hit an intraday low of 6184 before closing at 6198.7 down 24.8 points. Metals and Mining along with Healthcare sectors were hit the hardest with Utilities and Telecoms sectors ending positive. The ASX200 may see some further strong selling pressure if prices break below 6169.8 although the 6100 zone will be the key. Falling stocks outnumbered advancing ones by 608 to 487 and 391 ended unchanged.
The ASX200 is expected to open up 25 points after the SPI200 pushes higher overnight in a lackluster session for the US.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD RBA Financial Stability Review 11:30am
CNY Trade Balance Tentative
EUR Industrial Production 7pm
USD Import Prices 10:30pm
USD Prelim Consumer Sentiment 12am
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SPI200 INTRADAY LEVELS TO WATCH
