OVERNIGHT MARKET SNAPSHOT (8:10am AEDT)
- SPI200 (Sep) overnight futures down 13 pts to 5642
- SP500 up 16.51 pts to 2653.29
- NASDAQ up 66.48 pts to 7098.31
- Dow Jones up 157.03 pts to 24,527.27
- FTSE100 up 73.25 pts to 6880.19
- DAX30 up 148.92 pts to 10,929.43
- GOLD futures US Session (Feb) up $3.35 to $1250.55 an ounce
- COPPER futures US Session (Comex Mar) down $0.0030 to $2.7640 a pound
- OIL futures US Session (Nymex Jan) down $0.51 to $51.12 a barrel
- CRB Index down 0.60 pts at 181.20
- AUDUSD trading at 0.7215
- EURUSD trading at 1.1365
- GBPUSD trading at 1.2607
- USDJPY trading at 113.2200
The US saw bulls come out to play on renewed optimism on the trade war which was fueled by upbeat comments from Trump. Trump said that the US and China have agreed to a temporary trade truce and that China is buying a “tremendous amount” of soybeans from the US. He also went so far as to say that he may intervene in the case against the Huawei Technologies executive if it would help secure a trade deal. An afternoon selloff from the highs kept the bulls in check. The DOW was up 0.64%, the broader SP500 was also up 0.63% while the Nasdaq closed up 0.95%. In Europe shares were supported by trade war news and also that Italy may reach a compromise with the EU over its 2019 budget and proposed debt. Brexit concerns are still at the forefront of traders minds but they expect to see a deal on expectations that no-one in parliament will want to take responsibility for a ‘hard Brexit’ and a worse case scenario will be avoided.
Breaking News after the close : May wins the vote of confidence in her leadership.
The USD found sellers as traders piled into the Pound and as US bonds edged lower on positive CPI data. The GBP was stronger as traders bet that Theresa May would survive the no confidence vote on her leadership and salvage a deal for Brexit. The EUR also found support from buyers on news that a new budget proposal from Italy to the EU was lighter on debt. The AUD continued to edge higher after recent sellers started to get squeezed out of the action.
Gold was higher after selling into the USD helped to lift the precious metal. Oil was lower in the dying hours of the session and couldn’t hold up after US inventories came out less negative than expected and traders become suspect on a production cut from OPEC. Copper held its ground overnight on trade war optimism as China and the US start talking.
Cryptocurrencies bounced overnight to trade higher with Bitcoin currently trading at $3472.8 up 2.56%, Ethereum at $90.34 up 3.46% and Ripple trading at $0.30712 up 2.67%.
The ASX200 bulls fought back today to finish the session up 77.6 points at 5653.5. Bulls found some support and confidence in news that talks are under way between China and the US. Australian exports to its to trading partner China, have been hurt from the trade war so any news of this easing is going to be buoyant. Advancing stocks outnumbered falling ones by 639 to 469 and 347 ended unchanged.
The ASX200 is expected to open down 10 points as the SPI200 fell into the close of the US session.
ECONOMIC DATA OUT TODAY (AEST)
AUD MI Inflation Expectations 11am
AUD RBA Bulletin 11:30am
EUR German Final CPI 6pm
CHF SNB Monetary Policy Assessment and Libor Rate 7:30pm
CHF SNB Press Conference 8pm
EUR Main Refinancing Rate 11:45pm
EUR ECB Press Conference 12:30am
USD Unemployment Claims and Import Prices 12:30am
SPI200 INTRADAY LEVELS TO WATCH
