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OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 15/01/20 (as at 8:30am AEDT)
- SPI200 (Mar) overnight futures up 5 pts to 6914
- SP500 down 4.98 pts to 3283.15
- NASDAQ down 22.60 pts to 9251.33
- Dow Jones up 62.62 pts to 28,939.67
- FTSE100 up 4.75 pts to 7622.35
- DAX30 up 4.97 pts to 13,456.49
- GOLD futures (Feb Contract) down $3.80 to $1546.80 an ounce
- COPPER futures (Comex Mar) up $0.005 to $2.866 a pound
- OIL futures US Session (Nymex Feb) up $0.18 to $58.26 a barrel
- CRB Index up 0.63 pts to 183.64
- AUDUSD trading at 0.6904
- EURUSD trading at 1.1127
- GBPUSD trading at 1.3020
- USDJPY trading at 110.0000
- USD Index US Session (ICE March) up 0.060 to 97.120
US Indexes pushed higher from the open into new all time highs then gave up the gains on the back of a report saying tariffs targeting Chinese goods will stay on through the 2020 election. The tariffs are now expected to continue to drag in economic growth and may affect company outlooks coming into the US reporting season. The tariff report triggered buyers into US Bonds to push yields lower on safe haven buying. The DOW closed up 0.11% while the broader SP500 was down 0.15% and the Nasdaq also ended down 0.24%. In Europe, Indexes ended the session flat after a rough open saw prices spike lower potentially on a bought of profit taking ahead of the signing of the phase 1 trade deal tonight in the US session. Traders will be analyzing the details of the deal once it is announced to judge the sustainability and the effectiveness of it in supporting the currently high valuations.
The USD had a choppy session as gains into the US open were given back on the tariff report. The dollar has held in a tight range which we expect to continue into the US session tonight. Dollar strength was also capped by a weaker inflationary figure which supported the Fed Reserves path to keep interest rates on hold through this year. The EURO moved inversely to the USD as price initially spiked lower on dollar strength only to bounce back as the dollar fell back to the lows. Expect the theme to continue and for the Euro to be Dollar sensitive. The GBP found strength to move higher from the open of the European session and through to the US close as recent sellers were squeezed back out of the action. The AUD continued to oscillate between gains and losses in a narrowing range but is looking heavy at current levels. We expect to see a washout of buyers and move lower prior to the longer term trend up to again kick in. The USDJPY was range bound for the session as initial strength in the USD provided support while a minor safe haven bid into the YEN on the tariff report provide resistance to a push to new highs.
Gold came under pressure during the Asian session but managed to claw back some of the losses through to the US close. Bears are still in control as price rejected the 1548 zone on the lack of a safe haven bid. We may see some buying to provide support if the signing of the trade deal does not live up to expectations. Crude Oil held its ground as expected around the $58 a barrel level. With oil inventory data out tonight, we expect to see the action heat up and bulls start to build the base for a push higher. Copper continued on with the move up started the previous session. New buyers stepped in to hold a minor higher level in a show of strength into the trade deal signing. The coming action into the commodity will depend on the details of the phase 1 deal and what is in store for phase 2.
Cryptocurrencies had a strong session pushing higher out of recent consolidation. Bitcoin is currently trading at $8702.5 up 6.31% while Ethereum is at $164.58 up 12.24% and Ripple is strong also trading at $0.23483 up 9.61%.
The ASX200 reversed the previous days weakness in style to open up and continue higher into the close to finish at new all time highs. In the end the index ended up 58.5 points to 6962.2 with the Consumer Staples and Utilities leading the charge followed by Resource and Mining sectors while Gold stocks were the only drag on the action. Rising stocks outnumbered declining ones by 686 to 485 and 343 ended unchanged.
The ASX200 is expected to open up 10 points as the bulls held on to the gains through the overnight session.
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ECONOMIC DATA OUT TODAY (AEDT)
JPY BOJ Gov Kuroda Speaks 11:30am
GBP MPC Member Saunders Speaks 7:40pm
GBP CPI and PPI Data 8:30pm
EUR Industrial Production and Trade Balance 9pm
USD PPI and Empire State Manufacturing Index 12:30am
USD Crude Oil Inventories 2:30am
USD FOMC Member Harker Speaks 3am
USD FOMC Member Kaplan Speaks 4am
EUR German Buba President Weidmann Speaks 5am
USD Beige Book 6am
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SPI200 INTRADAY LEVELS TO WATCH
