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OVERNIGHT MARKET SNAPSHOT FOR FRIDAY 3/08/20
- SPI200 (Sept) overnight futures down 1 pts to 5877
- SP500 up 24.90 pts to 3271.12
- NASDAQ up 157.46 pts to 10,745.27
- Dow Jones up 114.67 pts to 26,428.32
- FTSE100 down 92.23 pts to 5897.76
- DAX30 down 69.25 pts to 12,313.36
- GOLD futures US session (Aug) up $31.0 to $1973.30 an ounce
- COPPER futures (Comex Sep) down $0.0530 to $2.8610 a pound
- OIL futures US Session (Nymex Sep) up $0.35 to $40.27 a barrel
- CRB Index up 0.92 pts to 143.69
- AUDUSD trading at 0.7143
- EURUSD trading at 1.1778
- GBPUSD trading at 1.3085
- USDJPY trading at 105.8300
- USD Index US Session (ICE Sept) up 0.426 to 93.435
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US indexes ended the session with gains as earnings from tech giants came out stronger than expected after market close Thursday and supported the broader market sentiment into the weekend. The rally into the close was attributed to the insatiable demand for the FAANG companies that have been reporting earnings off the charts and triggering FOMO for traders who do not yet have a piece of the action. Energy stocks fell after Chevron reported an $8.3 Billion loss and ExxonMobil recorded a second consecutive quarterly loss. Over the weekend, a top US Fed Reserve official said that the US would benefit from a lockdown for four to six weeks. Along with further stimulus, the move would help to speed up the recovery as many more businesses would file for bankruptcy if the virus was left to spread uncontrollably. The DOW closed up 0.44% while the broader SP500 was up 0.77% and the Nasdaq ended up 1.49% for the session. In Europe, major Indexes were more reserved going into the weekend and ended the session with minor losses to add to the previous sessions weakness. Concern for coronavirus cases in the US and a lack of news on US stimulus left traders in a risk off mood for the day.
The USD Index finally found some buyers as recent sellers decided it was time to lock in some gains being the end of month. It will be interesting to see if the dollar rally can squeeze out further sellers as the Nasdaq continues to find buyers and provide some support to the US market. The EURUSD fell over from the start of the European session as the dollar squeezed out sellers. It was all one way action lower after price broke up through minor resistance around 1.1830. If the dollar finds further buyers today then expect the selling pressure to mount into the Euro. The GBPUSD fell just shy of the 1.3200 area before sellers stepped in to push price lower into the close of the US session. Price held up better than the Euro and remains in an uptrend held at 1.2950. The AUDUSD was quick to react to the dollar and share market weakness when the European session kicked off although price is still linked to the stock markets risk on tone for now. If the dollar continues to find weakness due to political risk and weaker interest rates, then the Aussie will be supported. The USDJPY saw a massive short squeeze to move higher off 104.200 lows. Expect to see more of the same if the dollar has another spike higher.
SPOT GOLD hovers around the highs as price holds another minor higher low at 1960. The bullish action is running out of steam but will continue to find buyers if the dollar takes another hit. Crude Oil is finding pressure from sellers and is being capped at the 40.50 area as demand wanes. A hit to share prices will trigger another wave of sellers into the commodity and drive prices back down below $40 a barrel. Copper bulls found the 2.9400 area too difficult to move through and found sellers for a sharp move lower once the dollar started to rally. Expect to see further weakness in price as longer term buyers start to cut and run.
Cryptocurrencies took a hit on the weekend as Bitcoin dropped out of the sky and fell over $1400 before recovering some of the losses. Bitcoin is currently trading at $11126 down 5.67% while Ethereum is at $376.63 down 2.12% and Ripple is at $0.29190 up 2%.
The ASX200 was hit from the open Friday as the selling continued and price broke down through the 6000 zone triggering a wave of selling into the close. All sectors were lower on the day with Energy down over 3% then Financials down 2.75% and Resources down around 2.5%. Falling stocks outnumbered advancing ones by 824 to 432 and 316 ended unchanged.
The ASX200 is expected to open flat as the SPI200 managed to bounce off the lows into the US close and make back the sessions losses.
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ECONOMIC DATA OUT TODAY (AEST)
JPY Prelim GDP 9:50am
JPY Final Manufacturing PMI 10:30am
AUD ANZ Job Adverts 11:30am
CNY Caixin Manufacturing PMI 11:45am
EUR German Final Manufacturing PMI 5:55pm
EUR Final Manufacturing PMI 6pm
USD ISM Manufacturing PMI 12am
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SPI200 INTRADAY LEVELS TO WATCH
