November 7, 2018
OVERNIGHT MARKET SNAPSHOT (8:05am AEDT)-
The US edged higher in relatively a muted session as traders were cautious ahead of US midterm election results. Traders are trying to assess the fallout and the different scenarios for further economic growth. The USD has benefited from a strong economy, rising interest rates and tax cuts and if Trumps Republican party loses control of the House of Representatives, it may mean less ‘growth friendly’ policy. The DOW closed up 0.76% while the broader SP500 was up 0.63% while the Nasdaq was down 0.38%. In Europe major Indexes were lower in a choppy session as traders punished stocks that missed earnings expectations and remained cautious on others.
The USD edged lower in a choppy session as traders stay in a holding pattern ready to assess the fallout from the midterm elections. The result for the USD is important as a lot of markets ie emerging markets, will be watching how the USD reacts and what the outlook is going forward. The EUR, the AUD and the GBP were all higher on USD weakness but trading was tough as buyers and sellers jostled trying to anticipate the next move for the USD.
Gold was was lower again as traders continued to square up bought positions and take risk off the table. Oil continued the move lower as details of Iranian sanctions come out and show that much more Iranian oil will remain on the market than previously thought. The US has granted eight countries exemptions to continue to buy Iranian oil without penalties from the US. Concerned remains over demand as continued trade conflicts hamper economic growth. Copper continued to push lower and give up recent gains on a lack of news flow regarding US/China tariffs.
Cryptocurrencies were up across the board with Bitcoin lagging at $6472.9 up only 0.30%. Ethereum is at $217.14 up 3.91% and Ripple having a strong night trading at $0.53397 up 8.37%.
Locally, the ASX200 opened stronger and then never looked back to rally into the close and finish up 57.1 points to 5875.2. The RBA left interest rates on hold as expected as volumes for the session were lower ahead of the US elections. Higher Iron Ore prices lifted miners with heavyweights BHP and RIO leading the charge. Advancing stocks outnumbered falling ones by 609 to 449 and 342 ended unchanged.
The ASX200 is expected to open flat to down 5 points after the SPI200 failed to kick on with the days strength into the European and US sessions as general trading was slow.
ECONOMIC DATA OUT TODAY (AEST) –
NZD Unemployment Rate and Employment Change 8:45am
JPY Average Cash Earnings 11am
NZD Inflation Expectations 1pm
EUR German Industrial Production 6pm
EUR Retail Sales 9pm
USD Crude Oil Inventories 2:30am
NZD Official Cash Rate, Monetary Policy and Rate Statement 7am
SPI200 INTRADAY LEVELS TO WATCH –
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