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OVERNIGHT MARKET SNAPSHOT FOR MONDAY 27/04/20
- SPI200 (Jun) overnight futures up 82 pts to 5298
- SP500 up 38.94 pts to 2836.74
- NASDAQ up 139.77 pts to 8634.52
- Dow Jones up 260.01 pts to 23,775.27
- FTSE100 down 74.38 pts to 5752.23
- DAX30 down 177.70 pts to 10,336.09
- GOLD futures (June Contract) down $9.80 to $1735.60 an ounce
- COPPER futures (Comex July) up $0.046 to $2.358 a pound
- OIL futures US Session (Nymex June) up $0.44 to $16.94 a barrel
- CRB Index down 0.74 pts to 112.75
- AUDUSD trading at 0.6371
- EURUSD trading at 1.0823
- GBPUSD trading at 1.2367
- USDJPY trading at 107.5100
- USD Index US Session (ICE June) down 0.270 to 100.265
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US Indexes ended the session higher although not without a fight from the bears. Traders will be keenly watching health data from early-opening states; much to the dismay of health experts; to learn if they acted too quickly and whether they will see a spike in cases again. Buyers still remain intent on pushing action higher and leaning on support from the massive stimulus to fight off the bears as long as talk continues to be centered around restarting economies. The US unemployment rate is expected to continue to climb which is the reason why global governments are keen to get people back to work. The hard part now is how to gradually re-open and not re-ignite the spread (which will be an impossible task) but expect it to be in jobs that are costing the tax payer. The DOW finished up 1.11% while the broader SP500 was also up 1.39% and the Nasdaq up 1.65% for the session. In Europe, stock Indexes moved lower as with investors disappointed by the lack of details in a trillion-euro emergency fund agreed by EU leaders. Late Thursday the EU approved a 500 Billion Euro package but left out any details of the bigger fund until early May or even later if leaders can not agree on whether the fund should be transferring grant money or simply making loans.
The USD Index moved lower through the European and US sessions to give up early minor gains made during Asian trade. Price pushed up into the 110.800/111.000 resistance area before sellers quickly stepped in to reject the zone. The action reflected the markets unsettled sentiment as US bonds edged higher. The EURUSD benefited from the weakness into the USD and rallied hard off the lows around 1.0730. The action squeezed out a lot of the late sellers so we will be interested to see if the move up can continue today. The GBPUSD continued to see some choppy action with an initial spike lower rejected before price rallied once the USD weakness set in. The fact that the 1.2300 zone held a retest may see some buyers start to step in and apply pressure to the upside. The AUDUSD is looking good as price held a higher level after a push up through the 0.6400 zone Thursday. We expect that the bears will start to feel the pinch and be forced to close short positions leading to a run higher. The USDJPY is starting to look heavy and may not find buyers around the support zone at 107.350 as expected. Price is still holding above and any stock market panic will drive buyers back into the USD and therefore a rally into the USDJPY.
SPOT GOLD spiked lower off the highs into the start of the US session before gaining back some of the lost ground and following the stock market up into the close. Price may still need to clean out some buyers on another move down prior to bulls setting up for a run higher. Crude Oil prices flat-lined into the US close as buyers and sellers were happy to call it a day after the volatile week. Price traded in an ever tightening range but we expect that price will see some further volatility yet before a sustained move up. Copper rallied hard after a minor pullback to reset for the bulls. The longer term price action looks bullish but expect some minor profit taking and a pullback in the near term to hold another higher low.
Cryptocurrencies held onto the recent gains over the weekend and are building for another push up. Bitcoin is currently trading at $7620.4 up 1.37% while Ethereum is at $196.04 up 1.18% and Ripple is trading at $0.19567 up 1.06%.
The ASX200 found buyers happy to support the action into the close Friday as any move lower was quickly soaked up and rejected by the bulls. At the close the index ended up 25.5 points to 5242.6. The Energy sector performed the best as bargain hunters continue to dip their toes in the water, while the next best was Resources and then Healthcare stocks. Rising stocks outnumbered declining ones by 636 to 501 and 351 ended unchanged.
The ASX200 is expected to open up 80 points as the US drags the SPI200 higher into the close in Friday nights action.
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ECONOMIC DATA OUT TODAY (AEDT)
CNY Industrial Profit Data 11:30am
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SPI200 INTRADAY LEVELS TO WATCH
