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OVERNIGHT MARKET SNAPSHOT (as at 8:30am AEDT)
- SPI200 (Dec) overnight futures up 27 pts to 6726
- SP500 up 7.90 pts to 3093.08
- NASDAQ up 40.80 pts to 8475.31
- Dow Jones up 6.44 pts to 27,681.24
- FTSE100 down 47.03 pts to 7359.38
- DAX30 down 60.90 pts to 13,228.56
- GOLD futures US Session (December) down $3.50 to $1462.90 an ounce
- COPPER futures US Session (Comex Dec) down $0.040 to $2.6880 a pound
- OIL futures US Session (Nymex Dec) up $0.09 to $57.24 a barrel
- CRB Index up 0.29 pts to 181.28
- AUDUSD trading at 0.6863
- EURUSD trading at 1.1018
- GBPUSD trading at 1.2774
- USDJPY trading at 109.2600
- USD Index US Session (ICE Dec) up 0.229 to 98.218
US Stock Indexes continued to push higher into a US long weekend although a negative turn in trade news had market bulls concerned. Doubts for whether the trade deal will get done and if progress has even been made, continue to linger in the market. Trump told reporters Friday he has not agreed to the rollback of tariffs sought by China and that Beijing wanted to make a deal more than he did. The news clipped the bulls wings but by the end of the session the optimism had returned as traders bet that the US needs a deal as much as China and that something will get set in stone by the end of the year. Even as pessimism remained, the broader market SP500 managed to end at record closing highs. The DOW closed up 0.02% while the broader SP500 was up 0.26% and the Nasdaq ended up 0.48%. In Europe, major indexes moved lower after trade deal hopes were dampened by Trumps news release. Traders started to question whether the US and China are really close to a partial deal as times and dates for a signing have still not been set. The latest disagreement on the tariff rollback had traders edge into safe haven bonds.
By Saturday, Trump said that talks with China were going very well and that China needs a deal more than the US. In further supportive comments he said that a deal has to be the right for the US. The well timed words from Trump may ease the concern that a deal may not be on the cards as expected. He also said that there was incorrect reporting of the rollback in tariffs but continued to say that negotiations are going well.
The USD moved higher as safe haven bids entered the action after the news on tariffs. Buyers started the move up from the beginning of the European session and didn’t look back until the close of the US. The EURO came under pressure to end on its lows as the dollar rallied and traders favored the safety of the USD. The GBP also came under pressure and traded through key lows at 1.2805. The AUD struggled to find buyers as price headed lower and looks set to continue the trend today. Supportive news again from Trump over the weekend saying that talks are going well with China may trigger some buying today although the trend is down and traders may need some more solid news before changing the market bias. The USDJPY ended relatively flat as dollar buying was offset by safe haven YEN buying.
Gold struggled to find a safe haven bid as prices continued to be on the heavy side as the USD rallied. Crude Oil was under pressure as prices were heading lower on trade concern up until an ‘about face’ after the US session open where price suddenly spiked higher to make back any lost ground. It seems that sellers were not keen on holding over the weekend knowing the volatility of trade news. Copper found sellers on the rally in the USD but is still managing to hold on to shorter term higher lows from the move up off previous support.
Cryptocurrencies fight back over the weekend from a minor selloff friday to edge higher. Bitcoin is currently trading at $9038.5 up 3.06% after pushing below the 9000 level. Ethereum is at $189.64 up 2.96% and Ripple is trading at $0.28214 up 1.58%.
The ASX200 gave up early gains to end in the red for the session Friday. The Index ended down only 2.5 points to 6724.1 after gaining nearly 10 points in the final match to lift off the lows. The IT and Energy sectors were the best gainers for the day while gold came under pressure with the sector ending down 5.51%. Falling stocks outnumbered advancing ones by 589 to 531 and 350 ended unchanged.
The ASX200 is expected to open up 25/30 points after the SPI200 made back the days losses plus a little more into the weekend.
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ECONOMIC DATA OUT TODAY (AEDT)
JPY Current Account 10:50am
EUR German WPI 6pm
CNY New Loans 11th-14th
GBP Prelim GDP Data, Manufacturing Production, Goods Trade Balance and Industrial Production 8:30pm
USD Bank Holiday All Day
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SPI200 INTRADAY LEVELS TO WATCH
