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OVERNIGHT MARKET SNAPSHOT FOR MONDAY 6/01/20 (as at 8:15am AEDT)
- SPI200 (Mar) overnight futures up 46 pts to 6798
- SP500 up 15.87 pts to 3253.05
- NASDAQ up 60.66 pts to 9129.24
- Dow Jones up 161.41 pts to 28,745.09
- FTSE100 up 1.08 pts to 7574.93
- DAX30 up 93.35 pts to 13,320.18
- GOLD futures (Feb Contract) down $17.40 to $1556.90 an ounce
- COPPER futures (Comex Mar) up $0.015 to $2.808 a pound
- OIL futures US Session (Nymex Feb) down $2.59 to $60.11 a barrel
- CRB Index down 3.55 pts to 183.38
- AUDUSD trading at 0.6868
- EURUSD trading at 1.1109
- GBPUSD trading at 1.3095
- USDJPY trading at 109.1100
- USD Index US Session (ICE March) up 0.308 to 97.010
The US bounced back with a vengeance and ended the session with strong gains as the attacks on US military bases by Iran were brushed aside. Major Indexes paired gains late in the session on reports of blasts in Baghdad although found comfort after Iran indicated the missile strikes ‘concluded’ its retaliation to the US killing of General Qassem Soleimani and that they did not seek to escalate the confrontation further. Trump did his part in cooling concerns ahead of the US open saying that Tehran appeared to be ‘standing down’ and there were no US casualties in the attack. The DOW closed up 0.56% while the broader SP500 was up 0.49% and the Nasdaq ended up 0.67%. In Europe, Indexes started the session on the back foot but rallied off the open to end in the green as Trump and Iran comments supported buyers and eased concern of escalation in tensions between the two nations.
US private payrolls increased by the most in eight months for December which also gave buyers support during the session. The number was the largest gains since April and is a good heads up to Fridays major Employment data out in the US.
The USD moved higher through Asian trade and into the close of the US to end on session highs as safe haven traders moved back into riskier shares as markets bounced off the lows. The move in the US dollar pressured the EURO lower to continue the move down that began the previous session as technical traders continue to hammer the break below the 200MA. The GBP bears are showing signs of taking control as price holds lower highs. If the USD continues to rally we see price breaking below 1.3050 and potentially testing down to the 1.2950 zone…although the USD is extended in the short term. Unlike the other majors, the AUD managed to hold up off the lows for the session even as the USD rallied. The previous major low around 0.6840 may bring in some buyers to put the pressure on recent sellers to squeeze price higher. The USDJPY initially spiked lower on war fears as safe have traders dived into the safety of the YEN but later paired all the losses and ended the USD session with gains thanks to the strong move up in the Dollar.
Gold dropped hard as Iran/US tensions eased and gave up all the gains plus a little more from the price spike in Asian trade. Safe haven traders bailed out of the precious metal as markets bounced back. Crude Oil also initially spiked on the news of the attacks but then dropped like a stone through recent higher lows as traders re-assessed the impact on future supply. Adding to the downside pressure was an unexpected positive release for US Oil inventories. Copper again had a choppy session but the bulls won out in the end and continued to defend support to move prices higher.
Cryptocurrencies backed away from the highs and ended the session weaker across the board. Bitcoin is currently trading at $8025.7 down 1.54% while Ethereum is at $139.62 down 3.64% and Ripple is trading at $0.20643 down 4.68%.
The ASX200 had a rough session yesterday for traders as the Index was hit hard after the open once news filtered through markets that Iran had attacked US bases in Iraq and fear gripped investors. The Index later bounced back as the uncertainty of a war were brushed aside. In the end the Index ended down only 8.8 points to 6817.6 after earlier being down over 70 points. Falling stocks outnumbered advancing ones by 761 to 402 and 333 ended unchanged.
The ASX200 is expected to open up 50 points as the SPI200 rallied during a strong overnight session.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD Trade Balance 11:30am
CNY CPI and PPI Data 12:30pm
EUR German Industrial Production and Trade Balance 6pm
GBP BOE Gov Carney Speaks 8:30pm
EUR Unemployment Rate 9pm
USD FOMC Member Clarida Speaks 12am
USD Unemployment Claims 12:30am
USD FOMC Member Kashkari Speaks 1:30am
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SPI200 INTRADAY LEVELS TO WATCH
