–
OVERNIGHT MARKET SNAPSHOT (as at 8:30am AEDT)
- SPI200 (Dec) overnight futures up 17 pts to 6708
- SP500 up 2.19 pts to 3094.03
- NASDAQ down 3.99 pts to 8482.10
- Dow Jones up 92.10 pts to 27,783.59
- FTSE100 down 14.23 pts to 7351.21
- DAX30 down 53.44 pts to 13,230.07
- GOLD futures US Session (December) up $10.60 to $1464.30 an ounce
- COPPER futures US Session (Comex Dec) down $0.007 to $2.6380 a pound
- OIL futures US Session (Nymex Dec) up $0.42 to $57.22 a barrel
- CRB Index up 0.51 pts to 180.31
- AUDUSD trading at 0.6835
- EURUSD trading at 1.1004
- GBPUSD trading at 1.2849
- USDJPY trading at 108.8200
- USD Index US Session (ICE Dec) up 0.059 to 98.210
US Stock Indexes opened weaker under negative trade sentiment and Hong Kong concern only for the bulls to shrug it off and edge higher through the session. US Bond yields fell on Hong Kong unrest and on increased fears that there may be a Chinese crack down and what this may mean for Global tensions. Safe haven assets rallied on concern that the US markets have over factored in a trade deal. US Fed Chair Powell testified to congress on the state of play for interest rates and inflation. He offered an upbeat economic outlook which supported the view that the Central Bank will pause on further rate cuts. He was not drawn into pre-election-year politics and Trumps call again for negative interest rates. He did say that “Negative interest rates would certainly not be appropriate in the current environment”. The DOW closed up 0.33% while the broader SP500 was up only 0.07% and the Nasdaq ended down 0.05%. In Europe, the major Indexes took a bit of a slide as confidence waned on the open as prices have generally extended into highs over the previous sessions. With news on trade stalling, buyers may be tempted to lock away some gains at current levels which may trigger a pullback over the coming days. If the US comes under pressure we would expect to see Trump on twitter talking up the trade deal in support of the market.
The USD was again very choppy ahead of Powells speech. Price could not push up into new highs as sellers capped the action. In the end the Dollar ended the trading session only slightly higher than where it started. The EURO continued to be heavy as sellers weighed on the action with major flows continuing to seek out the dollar as a haven and for the interest rate differential. The GBP also looked heavy as sellers pressured price on the dollar rally although the pound ended flat from the previous US close. The action is still hovering above the 1.2795 zone after the recent spike higher and also held minor lows (a higher level) around 1.2822 suggesting that we may expect a rally soon. The AUD continued on the same path as the previous few sessions with bears weighing on the action with no further news on trade to lift sentiment. We expect to see a move down into 0.6810 to retest previous key lows. The USDJPY again moved lower as safe haven YEN buying overshadowed the dollar bulls.
Gold found some buyers through the Asian session and into the European session as local share indexes came under pressure on trade deal concerns. The buying stalled into the US session as safe haven buyers were happy to hold on the sidelines as the US share market moved up. Crude Oil was again ramped up, during the US session, off the lower end of the consolidation zone. Price was edging lower when the bulls stepped in around 56.30 to start the charge higher towards 57.50. Copper continued the move lower towards support around 2.6310 as bears look content to edge price lower until further positive news can improve sentiment.
Cryptocurrencies held their ground with contained trade for the session as Bitcoin is currently trading at $8791.3 up 0.23%. Ethereum is currently at $188.33 up 1.39% while Ripple is trading at $0.27310 up 0.70%.
The ASX200 had an unexpectedly weak session yesterday considering that Europe was strong and the US ended slightly higher. Trade concerns continue to hamper the ASX200 as buyers are not happy to push price higher through the 6780 zone. The Index started the session with minor gains and then turned to push lower through the day to end down 54.6 points to 6698.4. All sectors apart from IT ended in the red with Utilities and Financials under the most pressure….but only marginally. Falling stocks outnumbered advancing ones by 642 to 503 and 335 ended unchanged.
The ASX200 is expected to open up 15 points as the SPI200 again rallied in after hours trade being supported by a positive US market. We are again watching for the bears to come out after the open to pressure prices lower on the ASX.
–
ECONOMIC DATA OUT TODAY (AEDT)
AUD RBA Assist Gov Orr Speaks 9:50am
JPY Prelim GDP Data 10:50am
AUD Employment Change and Unemployment Rate 11:30am
CNY Fixed Asset Investment, Retail Sales and Industrial Production 1pm
EUR German Prelim GDP 6pm
GBP Retail Sales 8:30pm
USD PPI Data and Unemployment Claims 12:30am
USD Fed Chair Powell Testifies 2am
USD Crude Oil Inventories 3am
–
SPI200 INTRADAY LEVELS TO WATCH
