November 1, 2018
OVERNIGHT MARKET SNAPSHOT (7:20am AEDT)-
The US continued the upwards momentum from the previous session as buyers gained confidence from Trump comments on China. Solid earnings from Facebook lifted tech stocks although the company missed on revenue and growth projections. Traders are now looking to Apple earnings due at the close of tonight’s session for a further lift in sentiment. The DOW closed up another 241.12 pts or 0.97% while the broader SP500 was up 1.09% and the Nasdaq also finished up 2.01%. In Europe shares were higher across the board to finish a rough month on a positive note.
Traders will be awaiting US Employment data due out Friday night for direction on the USD and flow on affects to borrowing costs. Italy has a bank holiday tonight so local currency and bonds get some relief for a session.
The USD oscillated between gains and losses overnight as safe haven buyers edged back into shares although the index finished in positive territory. US Bonds fell as safe haven buyers edged out positions. The EUR and the AUD were both lower on USD strength while the GBP was higher as short sellers were squeezed ahead of the BOE monetary policy meeting tonight.
Gold continued to ease finishing lower as USD heads higher and safe haven buyers look elsewhere. Oil had a rough night to close down nearly 2% on a change in sentiment towards global shares and as global output increases ahead of Iranian sanctions. Copper continued lower as buyers stay on the sidelines awaiting more direction on US/China trade relations.
Cryptocurrencies were higher overnight but continues to lack the volatility of the past. Bitcoin is trading at $6365.2 up 0.49% while Ethereum is at $199.01 up 0.98% and Ripple at $0.45332 up 1.75%.
Locally, the ASX200 continued to find strength to hold above the 5800 level and close up 25.2 points with a very strong match at 4:10pm. Asia, namely China, was stronger in morning trade which supported our index. Traders sentiment was positive after comments from Trump on China which saw buyers jump into ‘cheap’ stocks. Advancing stocks outnumbered falling ones by 658 to 502 and 335 ended unchanged.
The ASX200 is expected to open up around 25 points after the SPI200 continued its positive mood through the overnight markets.
ECONOMIC DATA OUT TODAY (AEST) –
AUD Trade Balance and Import Prices 11:30am
CNY Caixin Manufacturing PMI 12:45pm
AUD Commodity Prices 4:30pm
GBP Manufacturing PMI 8:30pm
GBP BOE Inflation Report, Monetary Policy Summary and Official Bank Rate 11pm
GBP BOE Gov Carney Speaks 11:30pm
USD Unemployment Claims 11:30pm
USD ISM Manufacturing PMI 1am
SPI200 INTRADAY LEVELS TO WATCH –
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