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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 2/04/20 (as at 7:15am AEDT)
- SPI200 (Jun) overnight futures down 169 pts to 5055
- SP500 down 114.09 pts to 2470.50
- NASDAQ down 339.52 pts to 7360.58
- Dow Jones down 973.65 pts to 20,943.51
- FTSE100 down 217.39 pts to 5454.57
- DAX30 down 391.09 pts to 9544.75
- GOLD futures (June Contract) up $4.00 to $1600.60 an ounce
- COPPER futures (Comex May) down $0.060 to $2.168 a pound
- OIL futures US Session (Nymex May) up $0.74 to $21.22 a barrel
- CRB Index down 3.29 pts to 118.50
- AUDUSD trading at 0.6076
- EURUSD trading at 1.0966
- GBPUSD trading at 1.2385
- USDJPY trading at 107.1500
- USD Index US Session (ICE June) up 0.433 to 99.525
US Indexes were hit hard overnight as sellers stepped into the action to lock away some recent gains right from the open of the session. The concern for investors now is whether the action is heading lower to test previous lows or move to new lows. Jobs data out along with Manufacturing data showed the first signs of what may be to come for the economy although the figures were not as bad as most analysts expectations as they were collated mid-march. The US major employment data is out Friday but will not show the full extent to the job losses so traders may have to wait for the following months release for a better idea to the extent of the damage. Traders were also concerned by Trumps dire warning for the virus over the coming few weeks. If it comes to pass, then the pressure on the US economy and jobs will only increase. The DOW finished down another 4.44% while the broader SP500 was also down 4.41% and the Nasdaq ended down 4.41% for the session. In Europe, stock Indexes also fell for the session but remained in the recent trading range. The drop in manufacturing data spelled further pain to come as the impact starts to filter through to the economic data. Traders are now concerned for the flow on to companies as it is inevitable that some companies will not be saved and will eventually default.
The USD Index moved higher to rise against all major crosses as the demand for USD continues. The move overnight was safe haven buyers looking ahead to further downside in global indexes as the Pandemic continues to spread across the globe and especially the US. The recent dollar buying was month end rebalancing but the surge overnight was triggered by Trumps warning on the increase to the death toll expected over the next month. The EURUSD again traded inversely to the USD as price headed south to test recent lows before gaining back some lost ground into the close. Price looks set to hold another lower high to put further pressure on buyers. The GBPUSD continues to look buoyant against the strength in the dollar. We still expect that if the 1.2330/60 level can hold then look for a push up through 1.2500. The AUDUSD saw some very choppy price action in the European and US sessions but the pressure remains to the downside in the near term. The thing that may be supporting the Aussie is news out of China that people are getting back to work which should flow on to our economy…of course only if the news and data can be trusted. The USDJPY remains in a near term downtrend even as the USD gains. Safe haven YEN buying may be keeping the pressure on the pair so we do expect to see continuation lower.
SPOT GOLD showed some strength against the flow of the share markets so there may be signs that the commodity is acting as a safe haven again. If price can consolidate these lows around 1570 as the indexes come under pressure then expect to see another push higher. Crude Oil continued to show good signs overnight even after US inventory data came out a lot higher than expected. News that Trump has invited oil executives to the White House to discuss potential ways to help the industry may be the support that price needs. A move up through the 22.00 area is what is needed to drag in further buyers for the squeeze on recent sellers. Copper moved down off the highs during the Asian session and the pressure continued into the close of the US as share markets moved lower. The weakness shows that traders are still tentative and may need to see a retest of lows before gaining confidence.
Cryptocurrencies held up okay to suffer only minor losses as the US share market sank. Bitcoin is currently trading at $6314.7 down 2.18% while Ethereum is at $131.60 down 1.38% and Ripple is at $0.17246 down 2.88%.
The ASX200 saw a choppy session yesterday with some sudden moves both up and down. In the end though the Index managed to hold onto some gains to end up 191.8 points to 5258.6 with all sectors ending with some gains. The leaders were in the Energy sector which finished up 7.45% then followed by the Telecom Services. Rising stocks outnumbered declining ones by 807 to 356 and 253 ended unchanged.
The ASX200 is expected to open down over 150 points to give up the previous sessions gains.
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ECONOMIC DATA OUT TODAY (AEDT)
JPY Monetary Base 10:50am
EUR Spanish Unemployment Change 6pm
EUR PPI Data 8pm
CAD Trade Balance 11:30pm
USD Unemployment Claims and Trade Balance 11:30pm
USD Factory Orders 1am
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SPI200 INTRADAY LEVELS TO WATCH
