OVERNIGHT MARKET SNAPSHOT (8:10am AEDT)-
- SPI200 (Sep) overnight futures up 11 pts to 5674
- SP500 closed
- NASDAQ closed
- Dow Jones closed
- FTSE100 down 100.92 pts to 6921.84
- DAX30 down 135.08 pts to 11200.24
- GOLD futures US Session (Feb) down $4.00 to $1242.60 an ounce
- COPPER futures US Session (Comex Mar) up $0.0130 to $2.7720 a pound
- OIL futures US Session (Nymex Jan) down $0.24 to $53.01 a barrel
- CRB Index down 0.39 pts at 183.75
- AUDUSD trading at 0.7268
- EURUSD trading at 1.1343
- GBPUSD trading at 1.2730
- USDJPY trading at 113.2300
The US stock markets and bond markets were closed overnight for a day of mourning for former US President George H.W. Bush. Concern over the US bond ‘yield curve’ ( Click Here for Info on Yield Curves ) drove markets lower in the previous session along with traders reassessing whether the China and the US can follow through with trade promises. The US Fed Reserve in its Beige Book overnight, said the economy appeared to be growing modestly with Labour markets tightened across a broad range of industries and wage growth also modest. They have also signaled that the interest rate tightening cycle is drawing to a close while tariff induced cost increases have spread more broadly to retailers and restaurants. In Europe shares played catch up to the US Indexes beat down the previous session as fear that bond spreads are signalling an impending recession as a trade war continues. Analysts also cut their estimates for 2019 earnings growth as markets turned sour.
The USD edged higher into the close as traders continued to realign themselves for changing rate hike expectations. The EUR was unchanged in a choppy session while the GBP edged higher on a more positive outlook for Brexit and the AUD was lower after disappointing economic data further dimmed the chance of a rise in rates.
Gold was slightly higher from yesterdays close although gave up some gains from the European session. Oil saw a choppy session as price pushed up to the 54.50 zone and then failed as the USD rallied and on news that OPEC increased output from October to November. Copper made back some of the previous sessions losses after China’s Commerce Ministry said that a Chinese trade and economics delegation had held a successful meeting with the United States.
Cryptocurrencies were lower again overnight as the choppy action continues. Bitcoin is currently trading at $3801.0 down 3.33% while Ethereum is trading at $104.00 down 5.58% and Ripple is at $0.34207 down 2.40%.
The ASX200 fell hard on the open after the rough night in the overnight markets, but then managed to rally 60 points off the lows into the close. At the end of the session the index was down 44.7 points to 5668.4. Asian stocks were lower across the board on US Treasury Yield concerns. Declining stocks outnumbered rising ones by 799 to 348 and 332 ended unchanged.
The ASX200 is expected to open up 10 points as the days rally continued through the European markets on the SPI200.
ECONOMIC DATA OUT TODAY (AEST) –
AUD Retail Sales and Trade Balance 11:30am
USD FOMC Member Quarles Speaks 12:15pm
EUR German Factory Orders 6pm
AUD RBA Assist Gov Debelle Speaks 8:05pm
All OPEC Meetings All Day
GBP MPC Member Ramsden Speaks 9pm
USD ADP Non-Farm Employment Change 12:15am
CAD Trade Balance 12:30am
USD Trade Balance and Unemployment Claims 12:30am
USD ISM Non-Manufacturing PMI and Factory Orders 2am
USD Crude Oil Inventories 3am
USD FOMC Member Bostic Speaks 4:15am
SPI200 INTRADAY LEVELS TO WATCH –
