December 12, 2018
OVERNIGHT MARKET SNAPSHOT (8:10am AEDT)
The US managed to edge higher on renewed trade talk from China although Trump threw a spanner in the works when he threatened to shut down the government. China indicated that they will cut tariffs on US made autos and car parts with formal documentation to come. Trump then undid the boost to markets and optimism with threats over funding for a border wall. The intraday volatility in the markets has traders trying to balance stock valuations with political news in Washington, Brexit, interest rates and trade. The DOW was down 0.22%, the broader SP500 was also down 0.03% while the Nasdaq held up to close up 0.16%. In Europe shares bounced on trade war optimism ahead of the US session open. The trade sensitive DAX led the charge ending up 1.49% while the FTSE was up 1.27%.
The USD found some further strength overnight as support came in from selling into the GBP and Euro. Political concerns and Brexit saw the EUR and the GBP weaker as traders still await a parliamentary vote on Brexit. They are now trying to weigh up the likelihood of a chaotic exit from the EU. The AUD was higher again after recent sellers were squeezed out of the action and buyers finding support from a change in tone on the trade war.
Gold was weighed down by a second straight day of gains into the USD. Oil was higher as traders look ahead to US Oil inventories tonight which are expected to be weaker. Copper found buying support on the back of renewed positivity into trade as China takes a step forward to negotiate.
Cryptocurrencies were generally lower overnight as the selling pressure continued. Bitcoin is trading at $3386.9 down 1.21% while Ethereum is trading at $87.34 down 1.92% and Ripple is at $0.29883 up 0.06%.
The ASX200 struggled yesterday in what should have been a relatively positive day showing that traders may have given up on the Christmas rally and staying out of the market. The Index finished up 23.4 points to 5575.9 mainly due to a late rally into the close. China confirmed that they were moving ahead on talks with the US as they said that a road map was discussed with US officials for the next stage of trade talks. Declining stocks outnumbered rising ones by 594 to 505 and 358 ended unchanged.
The ASX200 is expected to open up 15 points after the China/US trade news supported markets overnight to push the SPI200 higher.
ECONOMIC DATA OUT TODAY (AEST)
AUD Westpac Consumer Sentiment 10:30am
JPY PPI 10:50am
EUR Industrial Production 9pm
USD CPI Data 12:30am
USD Crude Oil Inventories 2:30am
USD 10 yr Bond Auction 5:01am
USD Federal Budget Balance 6am
SPI200 INTRADAY LEVELS TO WATCH
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