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OVERNIGHT MARKET SNAPSHOT FOR FRIDAY 24/04/20 (as at 7:15am AEST)
- SPI200 (Jun) overnight futures up 12 pts to 5218
- SP500 down 1.51 pts to 2797.80
- NASDAQ down 0.62 pts to 8494.75
- Dow Jones up 39.44 pts to 23,515.26
- FTSE100 up 55.98 pts to 5826.61
- DAX30 up 98.76 pts to 10,513.79
- GOLD futures (June Contract) up $13.30 to $1751.60 an ounce
- COPPER futures (Comex July) up $0.017 to $2.307 a pound
- OIL futures US Session (Nymex June) up $3.09 to $16.87 a barrel
- CRB Index up 2.38 pts to 113.49
- AUDUSD trading at 0.6373
- EURUSD trading at 1.0781
- GBPUSD trading at 1.2354
- USDJPY trading at 107.6100
- USD Index US Session (ICE June) up 0.079 to 100.607
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US Indexes were mixed overnight after another bad set of unemployment numbers. Millions more people joined the unemployed and sought benefits to confirm that all the jobs gained during the longest employment boom in US history have now been wiped out. The push to re-open states continues although many states are asking for help in testing for further coronavirus cases before relaxing the lockdown. For some reason, Trump and the Whitehouse have not been forthcoming to help as we suspect they are anxious for the country to get back to work and more testing may show an increase in cases and not help their argument. Still, traders were happy to look past the jobs data and rally from the open. They are now looking at the ‘drop’ in number of claims from the previous weeks and anticipating that the worst has past. Many have attributed the drop in claims to processing difficulties so the following few weeks data will give a better indication as some states are still seeing an increase in claims. Even if states start to re-open for non-essential workers, they have to be willing to visit shopping malls and spend to trigger an increase in employment to re-stimulate the economy. The DOW finished up 0.17% while the broader SP500 was down 0.05% and the Nasdaq down 0.01% for the session. In Europe, stock Indexes moved higher driven largely by Oil stocks and Banks while traders are eagerly awaiting news on EU stimulus. Traders may be factoring in support from the EU to re-invigorate the economy so hoping that the Indexes will have a run higher.
The USD Index again saw some action coming into the open of the US session. Price spiked lower after the release of the unemployment data but then bounced straight back once the US session began. Bulls are looking at the jobs data and seeing that we are over the worst of it while bears may be looking at the longer term economic impact and continue to move to the dollar as a safe haven. The Dollar continues the move up which started last week but it may find some resistance around the 100.80/111.00 zone. The EURUSD again did the opposite of the USD to initially spike higher and then retest the lows. Support was broken at 1.0810 during the Asian session so we see the selling continuing down to 1.0650 if current levels can not hold or basically if the USD continues higher. The GBPUSD was choppy but continues to hold higher levels as buyers grind price higher. Traders into the Pound continue to await news on Brexit which has largely been pushed aside in the last few months. The AUDUSD pushed up into the 0.6400 area through previous highs before falling back below the level into the US close. The Aussie is finding buyers on relief into commodities. The USDJPY continued to range trade but we still expect to see support hold and drag in buyers for a move up.
SPOT GOLD made its way higher to add to the previous sessions gains. Price is still stretched so expect to see some buyers lock away some gains soon up at these highs. Crude Oil prices again edged higher as oil-producing nations said they would accelerate production cuts and as the action from the futures rollover abates. We still expect to see further downside for the coming rollover and further production cuts have little affect. The US will continue to have storage issues if demand can not lift which in turn will depend on countries getting back to work. Buyers spiked Copper up into previous highs but the level was quickly rejected. Price does continue to hold minor higher levels but is extended so we may see some profit taking on the cards soon to trigger a move lower.
Cryptocurrencies had another positive session to extend higher as Bitcoin is currently trading at $7535.5 up 6.08%. Ethereum is at $188.75 up 3.28% and Ripple also performed well and is at $0.19532 up 4.22%.
The ASX200 had another choppy session yesterday as buyers gave up earlier gains to end the Index down 4.1 points to 5217.1. The action seems to be on shaky ground as buyers are not as active as they were in the bounce off the 4400 lows. The index was supported by the Gold Sector, Miners and Resources while the Energy sector found some bargain hunters to also end in the green. Rising stocks outnumbered declining ones by 680 to 506 and 299 ended unchanged.
The ASX200 is expected to open flat to up 5 points as the SPI200 traded in between the day sessions range with little lead from the US.
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ECONOMIC DATA OUT TODAY (AEDT)
GBP Retail Sales 4pm
EUR German Ifo Business Climate 6pm
USD Durable Goods Orders Data 10:30pm
USD Consumer Sentiment and Inflation Expectations 12am
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SPI200 INTRADAY LEVELS TO WATCH
