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OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 21/04/20 (as at 7:15am AEST)
- SPI200 (Jun) overnight futures down 53 pts to 5311
- SP500 down 51.40 pts to 2823.16
- NASDAQ down 89.41 pts to 8560.73
- Dow Jones down 592.05 pts to 23,650.44
- FTSE100 up 25.87 pts to 5812.83
- DAX30 up 50.12 pts to 10,675.90
- GOLD futures (June Contract) up $13.60 to $1712.40 an ounce
- COPPER futures (Comex July) down $0.041 to $2.304 a pound
- OIL futures US Session (Nymex June) down $3.81 to $21.22 a barrel
- CRB Index down 5.03 pts to 118.76
- AUDUSD trading at 0.6336
- EURUSD trading at 1.0863
- GBPUSD trading at 1.2439
- USDJPY trading at 107.6200
- USD Index US Session (ICE June) up 0.219 to 100.055
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US Indexes were hit hard while Oil prices went into free fall as traders could not ‘give it away’. Contract holders were forced to pay up to get rid of the May contract as it expired and roll into June. It has been hit hard by the coronavirus as demand has dried up. This makes the energy sector the worst performer of the 11 sectors in the US, slumping 45%. Traders do not expect demand to come back anytime soon but the lower prices could boost the economy when people come out of lockdown and if the lower oil price can flow on to consumers through lower fuel prices…but that may be a big ask of producers. There have been some winners from the lockdown as people save on fuel costs and use the money to shop online and binge on Netflix. The DOW finished down 2.44% while the broader SP500 was down 1.79% and the Nasdaq down 1.03% for the session. In Europe, stock Indexes managed to end the session higher being buoyed by healthcare stocks after Novartis was given the go ahead by the FDA to conduct a randomized trial of malaria drug hydroxychloroquine against COVID-19. The sector gains offset losses due to the Oil slump and the reality check of company earnings. Traders will now be looking ahead to readings for Global manufacturing data due out Thursday.
The USD Index edged higher as tumbling oil prices hit commodity linked currencies and the dollar benefited. There was also some safe haven buying into the dollar on concerns for global stock indexes although net short positions into the USD increased. The EURUSD had a choppy session as the USD bounced around. Price traded above and below the 1.0857 zone to end the session roughly where it started. Traders will be focused on a video summit between EU Governments on how to tackle the fallout from the pandemic. Many governments are looking for help in the form of bonds. The GBPUSD was also choppy as price swung between gains and losses. Resistance is now holding around 1.2520 with support around 1.2410. The AUDUSD came under pressure during the US session as Stock Indexes moved lower. Price is now held down below 0.6390 and may look to make a run lower if indexes continue to come under pressure. The USDJPY was also choppy with the swings in the USD and also as safe haven YEN buyers stepped in to the action as shares fell. Price remains looking heavy so we see sellers holding lower highs and forcing price down in the short term with key support around 106.950.
SPOT GOLD started acting like a safe haven asset again as price rallied with falling share prices. We will still need to see a higher low hold before being convinced that Gold is going to new highs. Crude Oil price for the May contract was hammered and traded in negative territory which was the first time in history. The price settled at -$13.10 a barrel down 31.37%. Traders had to pay up to close the expiring contract and roll into the June contract which ended well higher at $21.22. Crude continues to be hampered by storage issues. At current prices, bankruptcies may be cheaper for some companies rather than paying to get rid of the oil. Click Here for Rueters article on Oil prices Copper unfortunately gave up all its recent gains and some as the US share market moved lower. The selling pressure started late in the Asian session and continued into the close of the US. The action may be the start of a squeeze on buyers and test of longer term support zones.
Cryptocurrencies came under pressure as the stock market went risk off and recent buyers locked away some gains. Bitcoin was back below the 7000 level and is currently trading at $6861.9 down 4.77%. Ethereum was also under pressure and is trading at $171.78 down 5.48% while Ripple is at $0.18312 down 4.78%.
The ASX200 started the session relatively flat yesterday before buyers were forced on the back foot as the index started to selloff. The selling pressure picked up steam into the close with the ASX getting hit in the final minutes and ending down 134.5 points to 5353. All sectors ended the day lower with Energy leading the charge finishing down 4.61% and Healthcare down 3.11%. Falling stocks outnumbered advancing ones by 724 to 507 and 298 ended unchanged.
The ASX200 is expected to open down 50 points after the SPI200 followed the US lower.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD Monetary Policy Meeting Minutes 11:30am
AUD RBA Gov Lowe Speaks 3pm
GBP Claimant Count Change and Unemployment Rate 4pm
EUR German ZEW Economic Sentiment 7pm
USD Existing Home Sales 12am
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SPI200 INTRADAY LEVELS TO WATCH
