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OVERNIGHT MARKET SNAPSHOT (as at 8am AEDT)
- SPI200 (Dec) overnight futures down 13 pts to 6651
- SP500 up 8.26 pts to 2997.95
- NASDAQ up 32.67 pts to 8156.85
- Dow Jones up 23.90 pts to 27,025.88
- FTSE100 up 14.37 pts to 7182.32
- DAX30 down 15.16 pts to 12,654.95
- GOLD futures US Session (December) up $1.30 to $1495.30 an ounce
- COPPER futures US Session (Comex Dec) up $0.010 to $2.6000 a pound
- OIL futures US Session (Nymex Nov) up $0.68 to $54.04 a barrel
- CRB Index up 0.56 pts to 175.53
- AUDUSD trading at 0.6825
- EURUSD trading at 1.1124
- GBPUSD trading at 1.2875
- USDJPY trading at 108.6500
- USD Index US Session (ICE Dec) trading at 97.347 down 0.376
US Stock Indexes ended higher thanks to a strong open as upbeat earnings results from Netflix and Morgan Stanley hepled to reaffirm a strong start to the reporting season. Traders are now willing to hang their hats of further positive earnings and put trade concerns to the side for now. Better than expected quarterly earnings will be another positive for the economy as it shows that growth is still lingering and takes pressure off Trump and a trade deal. Numbers out overnight still flag concerns for manufacturing as Industrial Production and The Philly Fed Manufacturing Index came in weaker than expected. The DOW closed up 0.09% while the broader SP500 was up 0.28% and the Nasdaq ended up 0.40%. In Europe, Indexes were initially buoyed as the European Union and Britain finally clinched a deal in terms of Brexit although the excitment soon faded into the close as traders came to terms with the potential difficulty in getting the deal pushed through parliament. Doubts still linger on whether Boris can win the British parliament’s approval for any deal as the Northern Irish Democratic Unionist Party (DUP) said it would vote against the accord at an extraordinary session on Saturday. Fear of a recession still dog Europe as Germany is stuck in a system where global trade is declining with the DAX index being heavily dependant on exports.
The USD came under pressure from buying into the GBP and the Euro on the long awaited Brexit deal ….or at least the possibilty that we are a lot closer now after the EU and Britain came to an agreement. The EURO benefitted from some safe haven buying as traders finally see some stability back to the zone and less dependance on the USD for yield. The GBP saw a choppy session on the back of Brexit news as traders tried to digestbthe news on the ongoing saga. The pair intially spiked higher but then fell back down to earth on concern that the deal may still not get through parliament. The Pound managed to ease its way back up into the close to end with some gains for the session. The AUD launched higher off after unemployment data out yesterday saw the number of new jobs decline although the numbers saw solid gains in fulltime employment and the unemployment rate tick lower suggesting the RBA may not need to cut rates further. The move was more of a short squeeze of sellers on their rate cut expectations than positivity of the economy getting back on track. The USDJPY came under pressure as the dollar moved lower.
Gold ticked slightly higher being supported by a move lower in the USD. Oil was also higher, thanks to the weaker dollar, even as inventories came in better than expected. Copper was initially boosted from the fall into the USD although sellers came back into the action during the US session as trade concerns continue to cap the action and dog the bulls.
Cryptocurrencies were slightly higher overnight with Ripple leading the charge higher outperforming the other majors. Botcoin is currently trading at $8051.4 up 1.08% while Ethereum is at $176.58 up 1.66% and Ripple is trading at $0.29835 up 5.29%.
The ASX200 was holding up well yesterday until the employment data came out a bit better than expected and brought into question further rate cuts from the RBA. All sectors ended in the red accept for Energy while Resources and Mining stocks led the market lower. In the end the index ended down 51.8 points to 6684.7. Falling stocks outnumbered advancing ones 645 to 508 and 319 ended unchanged.
The ASX200 is expected to open down around 10 points as the SPI200 struggled to find support overnight. Traders will be focused on China data out at 1pm today.
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ECONOMIC DATA OUT TODAY (AEDT)
JPY National Core CPI 10:30am
CNY GDP, Industrial Production, Retail Sales and Fixed Asset Investment 1pm
EUR Current Account 7pm
USD FOMC Member George Speaks 1am
USD FOMC Member Clarida Speaks 2:30am
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SPI200 INTRADAY LEVELS TO WATCH
