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OVERNIGHT MARKET SNAPSHOT FOR MONDAY 6/01/20 (as at 8:15am AEDT)
- SPI200 (Mar) overnight futures up 3 pts to 6767
- SP500 down 9.12 pts to 3237.16
- NASDAQ down 2.88 pts to 9068.58
- Dow Jones down 119.70 pts to 28,583.68
- FTSE100 down 1.49 pts to 7573.85
- DAX30 up 99.84 pts to 13,226.83
- GOLD futures (Feb Contract) up $4.60 to $1573.40 an ounce
- COPPER futures (Comex Mar) up $0.007 to $2.797 a pound
- OIL futures US Session (Nymex Feb) down $0.64 to $62.63 a barrel
- CRB Index down 0.46 pts to 186.93
- AUDUSD trading at 0.6867
- EURUSD trading at 1.1146
- GBPUSD trading at 1.3117
- USDJPY trading at 108.5300
- USD Index US Session (ICE March) up 0.347 to 96.697
The US edged lower as uncertainty over the Iran/US tensions continue with the US deploying 3500 paratroopers to the Middle East. Traders were also on the back foot after economic data pointed to continued weakness in manufacturing. Many feel it is not the time to add risk to the markets as US key employment data is due out Friday. The DOW closed down 0.42% while the broader SP500 was down 0.28% and the Nasdaq faired better ending down 0.03%. In Europe, Indexes followed on from strength in the Asian session as the DAX ended up strong while the FTSE was happy to finish flat being weighed down by middle east tensions and energy prices.
The USD Index bounced to push up into resistance around 97.10. The move up flushed out a lot of buyers into the major crosses so it will be interesting to see if the longer term dollar weakness continues. The EURO fell apart from the start of the European session as the USD rallied. Buyers may be looking to step in to support price above the 1.1125 lows in the near term. The GBP also gave up a lot of recent gains to end around session lows. Watching to see if price can hold above the 1.3095 zone to see if buyers are happy to hold a higher low and make a run back up to 1.3200. The AUD dropped like a stone through 0.6925 as a lot of buyers were caught off guard and squeezed out of the action after looking for a bounce higher off 0.6925. The USDJPY was a little more contained than the other major crosses and rallied from the strength into the USD.
Gold managed to successfully retest the $1553 zone as safe haven buyers continue into the precious metal. Aussie gold did a lot better as the AUDUSD fell to exaggerate the gains with a move up to $2289. We expect to see some strength again into local Gold stocks. Crude Oil continued to give back away from the highs although bulls may be looking to consolidate above $62 for another push higher through $66 looking for a run up to $75. Copper saw some choppy action finding weakness through the European session before buyers held a higher low to push prices up into the US close. Price has been edging lower since Xmas but we expect bulls are just holding back and setting for a new run higher.
Cryptocurrencies were generally higher with Bitcoin leading the way in what could be the start of a rally many crypto enthusiasts have been hoping for. Bitcoin is currently trading at $8147.4 up 7.19% while Ethereum is at $144.71 up 1.61% and Ripple is lower trading at $0.21605 down 3.12%.
The ASX200 had a big session yesterday as traders shrugged off Iran/US tensions. The Index opened strong and continued the momentum up into the close to end up 90.7 points to 6826.4. Healthcare was the biggest moving sector followed by Telecom Services and then Consumer Staples. The Gold sector gave back a lot of the gains from the previous session with Spot Gold falling from the highs as safe haven gains were locked away. Rising stocks outnumbered declining ones by 712 to 456 and 322 ended unchanged.
The ASX200 is expected to open flat as the SPI200 gave up early gains made during the European session through US trading.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD Building Approvals 11:30am
JPY Consumer Confidence 4pm
EUR German Factory Orders 6pm
USD ADP Non-Farm Employment Change 12:15am
USD FOMC Member Brainard Speaks 2am
USD Crude Oil Inventories 2:30am
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SPI200 INTRADAY LEVELS TO WATCH
