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OVERNIGHT MARKET SNAPSHOT FOR MONDAY 4/05/20
- SPI200 (Jun) overnight futures down 7 pts to 5230
- SP500 down 81.72 pts to 2830.71
- NASDAQ down 284.60 pts to 8604.95
- Dow Jones down 622.03 pts to 23,723.69
- FTSE100 down 138.15 pts to 5763.06
- DAX30 closed
- GOLD futures (June Contract) up $6.70 to $1700.90 an ounce
- COPPER futures (Comex July) down $0.033 to $2.311 a pound
- OIL futures US Session (Nymex June) up $0.94 to $19.78 a barrel
- CRB Index up 0.43 pts to 117.63
- AUDUSD trading at 0.6418
- EURUSD trading at 1.0981
- GBPUSD trading at 1.2506
- USDJPY trading at 106.9100
- USD Index US Session (ICE June) up 0.069 to 99.097
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US Indexes were hit hard Friday to end the week in the red and follow on from Thursdays weak session. Trade war fears between the worlds two largest economies, the US and China, reared its ugly head again at a time when the world is under coronavirus pressure. Fears that a trade war may resume had traders on the back foot into the weekend after Trump threatened to impose new tariffs on China in retaliation for its handling of the virus outbreak. The news hit sentiment just at a time when the markets may be turning bearish again. Unfortunately Trump has offered no evidence after claiming on Thursday he had seen proof that the virus originated in a Chinese laboratory. Any rise in tensions between the two nations would certainly have a negative impact on the US economy and business confidence. The DOW was beaten lower to finish down 2.56% while the broader SP500 was also down 2.81% and the Nasdaq down 3.20% for the session. In Europe, the DAX and most other major European Indexes were closed leaving the FTSE to bear the brunt of buyers moving to a risk off tone and locking away some recent gains.
US treasury yields were little changed for the session even after negative manufacturing activity data as traders will be looking ahead to this weeks projections for US borrowing to finance enormous stimulus efforts. Its expected that Treasury’s projection for borrowing is going to be huge and there will be a lot of uncertainty around how financing issues will be handled as the numbers are so big.
The USD Index was holding up okay up until the final hour of trade when price nosedived into the close. The move pushed price to finish just below recent lows which may open the door to further selling pressure. The EURUSD put in a good showing and continued to push higher. Price action moved up through a key recent high but did fail to close above the level so we will be watching to see if another higher low can hold to bring in further buyers to continue the move up. The GBPUSD fell in a move that started in Asian trade and continued through the European and US sessions. Price previously retested highs around 1.2645 which triggered buyers to lock away some gains. Some negative data along with increasing tensions between the US and China also weighed on the currency pair into the weekend. The AUDUSD was all one way traffic like the Pound as sellers stepped in to pressure buyers to give up a lot of recent gains on the back of the negative sentiment into share markets. The Aussie will not fare well if the trade spat kicks off again. The USDJPY was choppy after price fought back from early weakness as the USD found some support right up until the final hour. Price action is still looking weak but a move up through 107.079 could trigger some buyers into action and see a short squeeze on the pair.
SPOT GOLD retested the support zone around 1668 during the European session in a thin market before buyers reacted to lift price higher. It may be a good signs for bulls as price acted like a safe haven as shares came under pressure. Price will need to hold a higher low off 1668 in order to convince buyers that a move up through 1740 may be on the cards in the longer term. Crude Oil prices swung between gains and losses as buyers remain cautious into the commodity. Demand remains to be the issue and any lift in tensions between the US and China will have a negative effect on shares and in turn oil prices. The futures rollover is looming which will also cap buyers enthusiasm in the near term. Copper also came under pressure being linked to the fortunes of the share market. Price looks set to move lower again if 2.3170 holds the action down.
Cryptocurrencies had a mixed weekend to swing between gains and losses. Prices were looking positive until sellers stepped into the action late yesterday. Bitcoin is currently trading at $8939.8 up 0.39% while Ethereum is at $211.04 down 1.25% and Ripple is at $0.22027 down 1.47%.
The ASX200 was hit hard Friday as bulls retreated and stayed on the sidelines into the weekend. The Index started the session weak and the selling pressure did not let up all day leaving the ASX200 to close down 276.5 points or 5.01% to 5245.9. All sectors ended in the red with Gold hit the hardest down 7.06% being followed by Metals and Mining down 7.06%, Materials down 6.83% and Resources down 6.96%. Falling stocks outnumbered advancing ones by 923 to 299 and 300 ended unchanged.
The ASX200 is expected to open down 5/10 points as the SPI200 remained under pressure into the US close.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD MI Inflation Gauge 11am
AUD ANZ Job Adverts and Building Approvals 11:30am
EUR German Final Manufacturing PMI 5:50pm
EUR Final Manufacturing PMI 6pm
EUR EU Economic Forecasts Tentative
USD Factory Orders 12am
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SPI200 INTRADAY LEVELS TO WATCH
