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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 6/02/20 8:15am AEDT
- SPI200 (Mar) overnight futures up 56 pts to 6964
- SP500 up 37.14 pts to 3334.73
- NASDAQ up 40.71 pts to 9508.68
- Dow Jones up 483.22 pts to 29,290.85
- FTSE100 up 42.66 pts to 7482.48
- DAX30 up 196.59 pts to 13,478.33
- GOLD futures (April Contract) up $5.30 to $1560.80 an ounce
- COPPER futures (Comex Mar) up $0.044 to $2.586 a pound
- OIL futures US Session (Nymex Mar) up $1.51 to $51.12 a barrel
- CRB Index up 1.61 pts to 169.54
- AUDUSD trading at 0.6747
- EURUSD trading at 1.0999
- GBPUSD trading at 1.2996
- USDJPY trading at 109.8300
- USD Index US Session (ICE March) up 0.326 to 98.135
US Indexes had another big session as buyers were supported by positive economic data (employment numbers) and easing of coronavirus fears. Markets spiked across the board after news filtered through that researchers are closing in on a vaccine to treat the virus. The Hang Seng led the charge and launched higher on the news taking the pressure off buyers. Traders now are looking ahead and expecting any further damage to the Chinese economy to be limited putting the focus squarely back on global growth. Tesla’s bull run may be coming to an end as it drops 18% and weighed on the Nasdaq. The DOW closed up another 1.68% while the broader SP500 was also up 1.13% and the Nasdaq up 0.43% for the session. In Europe, Indexes were supported by the news on the virus which gave bulls the reason to dive in on the back of some positive earnings reports. The strongest performers were in autos, technology and materials stocks that have exposure to China.
The USD Index gained in a risk on tone into US shares after positive news on the virus and the stronger than expected employment data. The dollar is now pushing up into resistance so we expect some sort of reaction from sellers although the US share market is the place to be with the economy ticking along nicely which will support the US currency. The EURUSD came under pressure from the move higher in the USD. The Euro has extended the move down right into support at 1.0990 which may bring in some buyers to provide some relief from the selling. The GBPUSD was heading higher during the European session but was hit back down to support around 1.2960 in US trade. Buyers are defending the level at this stage so we will be watching for a higher low to build for the rally. The AUDUSD was well bid overnight being a barometer for risk appetite into China. The Aussie did give up some gains into the US close although buyers supported price right through the Asian and European sessions. If price can hold current levels, expect another push higher today to further squeeze sellers. The USDJPY continued its move higher as the dollar gained and safe haven traders remained on the sidelines.
SPOT GOLD continued to find selling pressure on the virus news but buyers are attempting to build support around 1550. Price still has some work to do as lower highs continue. US payrolls are out tomorrow night which, if they come out better than expected, will put further downward pressure on the precious metal. Crude Oil lifted off the 50 a barrel mark as positive news flowed through the market. We expect that the move up will continue as there is a lot of fuel from sellers that will have to buy back to lock in gains to support a rally. Copper also lifted off support as buyers flowed back into the action on expectations for a lift in demand for the metal as any effect from the virus outbreak on China’s economy can start to be quantified.
Cryptocurrencies lifted overnight across the board as technical traders kept the momentum going. Bitcoin is currently trading at $9685.2 up 5.17% while Ethereum is at $202.98 up 7.41% and Ripple is at $0.27677 up 3.91%. Other big gainers were Bitcoin cash up 12.34% and Litecoin up 6.57%.
The ASX200 opened strong enough yesterday but did not get the follow through as expected like the US and the index faded all day. In the end the ASX200 ended up only 27.4 points to 6976.1 giving back over half the gains from the highs at the open. The best performing sectors were IT followed by Metals and Mining then Materials while the Gold sector was down around 1.5%. We expect the gold sector will underperform the market again today and miners to lift. Rising stocks outnumbered declining ones by 729 to 482 and 307 ended unchanged.
The ASX200 is expected to open up 55/60 points as the SPI200 lifted with the overall risk on mood of the market.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD Retail Sales and Trade Balance 11:30am
EUR German Factory Orders 6pm
EUR ECB President Lagarde Speaks 7pm
EUR ECB Economic Bulletin 8pm
EUR EU Economic Forecasts 9pm
USD Unemployment Claims 12:30am
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SPI200 INTRADAY LEVELS TO WATCH
