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OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 19/02/20 (as at 8:15am AEDT)
- SPI200 (Mar) overnight futures up 4 pts to 7050
- SP500 down 9.83 pts to 3370.33
- NASDAQ up 1.57 pts to 9732.74
- Dow Jones down 165.89 pts to 29,232.19
- FTSE100 down 51.24 pts to 7382.01
- DAX30 down 102.70 pts to 13,681.19
- GOLD futures (April Contract) up $18.70 to $1605.10 an ounce
- COPPER futures (Comex May) up $0.009 to $2.608 a pound
- OIL futures US Session (Nymex Mar) up $0.06 to $52.11 a barrel
- CRB Index up 0.86 pts to 173.81
- AUDUSD trading at 0.6687
- EURUSD trading at 1.0794
- GBPUSD trading at 1.3002
- USDJPY trading at 109.8700
- USD Index US Session (ICE March) up 0.344 to 99.347
US Indexes pushed lower from the open as expected but managed to fight back into the close. Prices started out on the back foot as the Asian session took a hit on concerns that the virus will disrupt global supply chains after Apple said they were not likely to hit revenue targets due to declining Chinese demand. The Nasdaq took the news in its stride when it opened and managed to push into new all time highs during the session to disappoint the bears. The news from Apple was a sign that there will be a hit to economic growth but the extent is still unclear and investors remain hopeful that the damage will only be temporary. Again the action suggested the weakness in Asian trade provided a buying opportunity as US data continues to show a resilient consumer along with an accommodative Fed and higher earnings. The DOW closed down 0.56% while the broader SP500 also fell down 0.29% while the Nasdaq ended up 0.02% for the session. In Europe, major Indexes were lower to follow on from the selloff in the Asian session. The DAX also came under pressure from data showing that German Economic Sentiment deteriorated far more than expected in February on worries of the outbreak impacting world trade. UKs employment data came out better than expected but could not support the bulls as the focus remained on the virus’s economic effects.
The USD Index had a big night as bulls stepped up the safe haven buying into the currency. Bulls were also being supported by the demand into US stock markets as the rally off the lows in the DOW during the session saw the Dollar match the move with a rally of its own. The EURUSD was heavy after the weak German data and buying into the USD triggered the bears into action to push the Euro lower. The initial reaction to the data release pushed the Euro slightly higher but the move was to clear out some sellers prior to the spike lower. The lack of demand for the Euro supports a longer term move down to the 1.0600 zone and below. The GBPUSD rallied after the employment data and could not hold the gains into the close as the Dollar pushed higher. The AUDUSD was hit lower during the Asian session on the back of the Apple news. Further concerns will continue to pressure the Aussie as traders try to determine the extent of the economic damage and therefore demand for Aussie products from China. The USDJPY lifted as the Dollar gained and the pair did not see much of a safe haven YEN bid to pressure price. The Dollar strength out lifted the pair off support but price failed up near previous highs around 109.950.
SPOT GOLD found a safe haven bid as bulls come out to play. Price was supported through the Asian session and then spiked hard after the US open when share indexes were under pressure. The move highlights the concern for a major correction in global markets. Crude Oil bucked the gloom and doom mood and rallied off key support after Asian trade saw lower prices. The rally confirmed a higher low which suggests Oil may continue to be supported. Copper also found weakness coming into the US session but bounced into the US close. Copper bulls will need to defend the 2.5930 zone or else we expect to see another correction lower into key support. If the level holds then price will continue higher.
Cryptocurrencies had a big night to bounce back from the recent selloff as Bitcoin pushed back above the $10,000 level and while Ethereum continued to outperform. Bitcoin is currently trading at $10,065.8 up 3.94% while Ethereum is at $284.69 up 8.51% and Ripple is trading at $0.30071 up 5.62%.
The ASX200 was hit on the open yesterday as traders again find concern over the coronavirus as the US futures opened lower after the long weekend and tech giant Apple said it was not likely to meet its quarterly revenue forecast. The index managed to fight back and end down only 11.4 points to 7113.7. The biggest drag on the action was the IT sector then Energy while Utilities and Financials were the top gainers. Falling stocks outnumbered advancing ones by 659 to 471 and 364 ended unchanged.
The ASX200 is expected to open up 5 points as the SPI200 holds support overnight and US losses were well contained by the bulls.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD MI Leading Index 10:30am
AUD Wage Price Index 11:30am
EUR Current Account 8pm
GBP CPI and PPI Data 8:30pm
CAD CPI Data 12:30am
USD Building Permits, Housing Starts and PPI Data 12:30am
USD FOMC Meeting Minutes 6am
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SPI200 INTRADAY LEVELS TO WATCH
