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OVERNIGHT MARKET SNAPSHOT (as at 8:30am AEDT)
- SPI200 (Dec) overnight futures up 21 pts to 6760
- SP500 up 2.62 pts to 3096.66
- NASDAQ down 3.08 pts to 8479.02
- Dow Jones down 1.63 pts to 27,781.96
- FTSE100 down 58.45 pts to 7292.76
- DAX30 down 49.84 pts to 13,180.23
- GOLD futures US Session (December) up $8.00 to $1471.30 an ounce
- COPPER futures US Session (Comex Dec) down $0.015 to $2.6240 a pound
- OIL futures US Session (Nymex Dec) down $0.25 to $56.87 a barrel
- CRB Index down 0.22 pts to 180.09
- AUDUSD trading at 0.6786
- EURUSD trading at 1.1019
- GBPUSD trading at 1.2879
- USDJPY trading at 108.4300
- USD Index US Session (ICE Dec) down 0.180 to 98.050
US Stock Indexes slipped from all time highs on the open as earnings were the main focus for the session but then the bulls algos switched on to lift prices back to even into the close. Cisco reported earnings that came in weaker than expected which the company attributed to increasing global economic uncertainties keeping clients away from spending. On the flip-side, Walmart posted better than expected results highlighting the strength of the consumer in supporting the economy and offsetting the drag by the US/China trade war. Traders will focus on retail sales out tonight for a further hints on consumer going into a key holiday spending period for the economy. The DOW closed down 0.01% while the broader SP500 was up only 0.08% and the Nasdaq ended down 0.04%. In Europe, Indexes were hit by concerns over a global slowdown. Some weaker than expected economic data dragged on the mood for investors as Indexes hover below all time highs. Adding to the negative sentiment was a drop in Daimler after the carmaker said that tougher emission rules will hit earnings and they were cutting staff costs to seek 1 billion Euros in savings.
Powell said in his testimony to congress that the risks of the US economy facing a dramatic bust is remote. Data out showed US equity funds saw $2.31 billion of outflows in the week ended Wednesday while bond funds attracted $1.92 billion and money market funds (cash and cash equivalents) drew $18.42 billion during the period.
The USD saw some profit taking after Powells speech on the state of the economy. Some weaker data out did not help the dollar as prices fell under selling pressure of recent highs. The EURO was lifted on the back of the weakness into the USD but is still holding the longer term downtrend as weak European data keeps traders out of the currency for yield. The GBP also pushed higher and looks set to test through 1.2900 if the selling into the USD continues. The AUD was hit after weaker than expected employment data suggests further rate cuts from the RBA needed to be factored into the action. Sellers also hit the pause button after the Dollar started to sell off. The USDJPY continued the move lower as the USD sank. The price action pushing down through the 108.500 zone which may mark a decisive change in trend and should bring in sellers in the near term.
Gold again found some buying interest as a safe haven as no news on a trade deal is not necessarily good news. Traders are seeming to get more concerned that Trump is not tweeting about how good the talks are going and are concerned that stumbling blocks to a deal remain. Crude Oil took a hit after crude inventories cam out higher than expected and the USD pressured prices. Copper nosedived in a move that started during the European session as stock indexes came under pressure and a trade deal remains elusive.
Cryptocurrencies backed off to end lower for the overnight session. Bitcoin is currently trading at $9667.7 down 1.35% while Ethereum is at $184.60 down 1.90% and Ripple is trading at $0.26754 down 2.00%.
The ASX200 had another fun session as price hovered around even at the open and then rallied after employment data came in a lot weaker than expected. It seems that the bulls see further ‘easy money’ on the cards in the form of RBA rate cuts and were happy to drive the market higher into the close to end up 36.7 points to 6735.1. All sectors bar financials were up across the board with Consumer Staples and Telecoms leading the way. Rising stocks outnumbered declining ones by 634 to 516 and 342 ended unchanged.
The ASX200 is expected to open up 20 points after the SPI200 rallied overnight to continue on from where it left off the day sessions action.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD RBA Deputy Gov Debelle Speaks 12:30pm
CAD BOC Poloz Speaks 1:45am
EUR CPI Data and Trade Balance 9pm
USD Retail Sales Data and Import Prices 12:30am
USD Industrial Production 1:15am
EUR German Buba President Weidmann Speaks 4am
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SPI200 INTRADAY LEVELS TO WATCH
