February 13, 2019
OVERNIGHT MARKET SNAPSHOT (as at 8:10am AEDT)
The US rallied from the open to finish higher being supported by positive comments from Powell and trade talk optimism. US and Chinese officials have expressed hopes that the new round of talks would bring them closer to ending a year-long trade war. Traders also found support on news of a tentative deal to avoid another US government shutdown. The DOW closed up 1.49% awaiting trade news while the broader SP500 was up 1.28% and the Nasdaq also ended up 1.46%. In Europe, major indexes ended higher on trade talk optimism and a potential compromise to avoid another government shutdown.
The USD finished the session on the back foot as the dollar index, which measures the USD against a basket of six major currencies, pushed lower. Safe haven buyers into the Dollar locked in gains from the recent dollar rally, after Powell said that data shows a strong economy with unemployment near a half century low and economic output growing at a solid pace. The EUR, GBP and the AUD were all higher from the close of the previous session. The Pound was supported as British Prime Minister May asked for more time from lawmakers to reach a deal with the EU. The Euro took the opportunity from the drop in the USD to squeeze out weak bears holding short positions. The USDJPY was supported after the BOJ cut government bond purchases for the first time in two months.
Gold managed to rally through overnight session being supporting mainly by a weak USD. Aussie gold struggled as the AUD also gained ground to neutralize the move in Gold. Oil had a good night finding support from the dollar and an OPEC led supply constraint. Copper continued to edge lower to go against the grain as buyers seem content to wait on a trade deal.
Cryptocurrencies edged higher overnight with Bitcoin being the lagger which is currently trading at $3642.9 down 0.03%. Ethereum is trading at $123.22 up 1.22% while Ripple is currently at $0.30502 up 0.25%.
The ASX200 saw a choppy trading session to finish up 18.3 points to 6079.1 yesterday. The big four banks followed up from the previous sessions weakness to finish lower again. The energy sector provided some support along with resources and Utilities. The market was buoyed by news that Trump’s administration still want to meet with China’s Xi Jinping with all hopes being for a deal before the march deadline. Advancing stocks outnumbered falling ones by 581 to 529 and 374 ended unchanged.
The ASX200 is expected to open up 30 points after the SPI200 rallied into resistance following the strength in overnight markets.
ECONOMIC DATA OUT TODAY (AEDT)
AUD Westpac Consumer Sentiment 10:30am
USD FOMC Member George Speaks 11:30am
NZD Cash Rate, RBNZ Monetary Policy Statement and Rate Statement 12pm
NZD RBNZ Press Conference 1pm
GBP CPI and PPI Data 8:30pm
EUR Industrial Production 9pm
USD CPI Data 12:30am
USD Crude Oil Inventories 2:30am
SPI200 INTRADAY LEVELS TO WATCH
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