February 14, 2019
OVERNIGHT MARKET SNAPSHOT (as at 8:10am AEDT)
The US managed to extend the previous sessions rally as traders gained further confidence in a trade deal between the US and China. Buyers were also supported by inflationary data which came in lower than expected taking further pressure off a rate rise and supports the Feds ‘patient’ stance. The DOW closed up 0.46% while the broader SP500 was up 0.30% and the Nasdaq lagged but also ended up 0.08%. In Europe, major indexes ended higher after continued trade optimism stabilized earnings outlook after recent steep downward revisions.
The USD reversed the previous session to close higher as traders are still unsure of what to do with the USD. Safe haven buyers edged back in although traders were happy to keep risk into equities as trade negotiations are heading in the right direction. The EUR, GBP and the AUD were all lower as the USD rallied. The AUDUSD fared better than other majors on the dollar rally after consumer confidence earlier in the day session came out positive and lifted the Aussie. It also found strength from its correlation to the Kiwi Dollar after the RBNZ’s policy statement release which adopted an optimistic tone regarding the near-term economic outlook. The Pound also found weakness on falling inflationary data released overnight. The USDJPY was supported by strength in the dollar as the pair continued the push higher through 111.000.
Gold gave up any earlier gains to get hit lower through the US session as the outlook for a trade deal improved and the dollar gained. Traders were happy to remain risk on into shares as they continue the run up from the start of the year. Oil had a great start to the US session with a $2 rally although gave up some gains after USD Oil inventory came out higher than expected. Copper held up well against the strength into the USD as buyers were supported by the improving trade deal outlook.
Cryptocurrencies tried to hold their ground but edged lower overnight. Bitcoin is currently trading at $3611.9 down 0.78% while Ethereum is at $121.71 down 1.06% and Ripple is trading at $0.30287 down 0.42%.
The ASX200 struggled from the open yesterday and bulls could not push price back above the 6100 level. The Index closed the session down 15.5 points to 6063.6. Banks managed to end in the green, well all except CBA that went ex-div. Rising stocks outnumbered declining ones by 618 to 509 and 363 ended unchanged.
The ASX200 is expected to open down 10 points as the SPI200 dropped 20 points to support into the close of the US session.
ECONOMIC DATA OUT TODAY (AEDT)
JPY Prelim GDP 10:50am
AUD MI Inflation Expectations 11am
CNY Trade Balance Tentative
EUR German Prelim GDP 6pm
GBP MPC Member Vlieghe Speaks 8:30pm
EUR Flash GDP and Flash Employment Change 9pm
USD Retails Sales Data, PPI Data and Unemployment Claims 12:30am
AUD RBA Assist Gov Kent Speaks 7:45am
SPI200 INTRADAY LEVELS TO WATCH
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