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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 27/02/20 (as at 8:15am AEDT)
- SPI200 (Mar) overnight futures down 28 pts to 6627
- SP500 down 11.82 pts to 3116.40
- NASDAQ up 15.16 pts to 8980.77
- Dow Jones down 123.77 pts to 26,957.59
- FTSE100 up 24.59 pts to 7042.47
- DAX30 down 15.61 pts to 12,774.88
- GOLD futures (April Contract) down $9.50 to $1640.50 an ounce
- COPPER futures (Comex May) down $0.015 to $2.567 a pound
- OIL futures US Session (Nymex Apr) down $1.18 to $48.72 a barrel
- CRB Index down 2.21 pts to 166.28
- AUDUSD trading at 0.6552
- EURUSD trading at 1.0885
- GBPUSD trading at 1.2905
- USDJPY trading at 110.4400
- USD Index US Session (ICE March) up 0.146 to 99.047
US Indexes were choppy overnight as the support team were out trying to hold markets within the longer term uptrend. Indexes bounced from the open but then sellers were quick to reverse the gains on pandemic concerns as traders worry of a spread into the worlds largest economy. Officials are monitoring 83 people in New York who have visited China and investors will be on edge that it may spread in the densely populated city. Trump is doing his best with his ‘fake news’ saying that a vaccine is ‘very close’ and the White House has also been on the wires saying the virus is contained ‘pretty much airtight’. This is in stark contrast to health officials which is continuing to pressure any bargain hunters as traders need some hard facts before stepping back into the action. The DOW closed down another 0.46% and the broader SP500 was down 0.27% while the Nasdaq ended up 0.17% for the session. In Europe, major Indexes took a breather and bounced back from an early selloff on the open. Companies reported to help to soothe the fear although many are warning of an expected hit to underlying profits and growth due to the virus outbreak.
The USD Index managed to find support in European trade but then was sold back down during the US session as share markets continued to come under pressure and bulls could not hold onto any gains. Expectations for another supportive rate cut continued to see sellers dominate the action although Fed Vice Chair Clarida said while the central bank is monitoring the impact of the epidemic, it is still too soon to gauge if it would require a change in monetary policy. The EURUSD continued to benefit from the dollar weakness as buyers held higher levels and the pair ended near session highs. The action on the way up has been choppy as traders do expect the USD to be supported at some stage by some safe haven buying. The GBPUSD nosedived during the European session on expectations that upcoming talks between the EU and UK will not go to plan and will have mixed outcomes. The move pushed price straight back down to support and wiped out all the previous sessions gains as the pair did not find any support from the fall in the dollar. The AUDUSD broke below the 0.6585 support zone which triggered a long squeeze and buyers bailed on bets that the pair will find some support. Virus concerns continue to hamper gains in the Aussie and if news starts to filter through on impacts to the global economy, we expect to see more selling pressure. The USDJPY traded basically in lock step with the USD and held a minor higher low around the 110.1650 zone.
SPOT GOLD finally got some traction to hold lows around 1625 although there is still some selling pressure capping rallies. If the share markets take another turn for the worse, expect to see a break above 1655 on Spot Gold lead to a push to previous highs and potentially beyond. Crude Oil found no support from unexpected weakness in inventory data. Price continues to find pressure from expectations for a hit to the global economy although traders are still struggling to assess how bad the impact may be. Copper spiked down into support but the selling was quickly reversed into the close. The longer term pressure is still down on demand concerns.
Cryptocurrencies fall hard as Bitcoin liquidations trigger selling pressure into the crypto market. Bitcoin is currently trading at $8815.8 down 6.13% while Ethereum is at $228.99 down 9.29% and Ripple was also hit hard and is trading at $0.23312 down 9.45%.
The ASX200 again had a rough session with investors having nowhere to hide as sectors were down across the board. The darlings on the way up, the Healthcare and IT sectors, were the worst performers being followed closely by Utilities and Gold stocks. The index ended down 158.5 points or 2.31% to 6708.1. The last three days have pretty much wiped off all of the 2020 gains. Falling stocks outnumbered advancing ones by 1093 to 215 and 263 ended unchanged.
The ASX200 is expected to open down another 30 points as the SPI200 gave up any gains into the US close.
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ECONOMIC DATA OUT TODAY (AEDT)
NZD ANZ Business Confidence 11am
AUD Private Capital Expenditure 11:30am
EUR M3 Money Supply 8pm
GBP MPC Member Cunliffe Speaks 9:30pm
CAD Current Account 12:30am
USD Durable Goods Data, GDP Data and Unemployment Claims 12:30am
USD Pending Home Sales 2am
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SPI200 INTRADAY LEVELS TO WATCH
