March 19, 2019
OVERNIGHT MARKET SNAPSHOT (7:15am AEDT)
The US moved higher again and was supported by a rally in the banking and energy sectors overnight. The move up was relatively contained as traders await news from the US Fed Reserve on the future direction of interest rates. No further news on US/China trade left traders cautious coming into the FOMC meeting Thursday as volume for the session was below the average. The DOW closed up 0.25% while the broader SP500 was up 0.37% and the Nasdaq also closed up 0.34%. Europe saw a mixed session with the FTSE finishing higher while the DAX index moved lower into the close. The FTSE gained on expectations for a third Brexit vote after ruling out a no-deal exit.
The USD was generally flat to fluctuate between gains and losses for the session. Traders were subdued ahead of the FOMC release later this week on interest rates where they are expected to remain in a holding pattern. The EUR rallied against the USD as did the AUD which was helped by a rally in the commodity index as basic resources rallied. Iron ore gained in Asian trade as Vale, the worlds top iron ore miner, announced further output cuts. The GBP lost ground against the Dollar on the back of Brexit concerns. May overnight tried to salvage her Brexit deal by winning over doubtful lawmakers and is expected to hold a third vote on her Brexit deal in the coming days. The USDJPY edged lower but may be in a prime position for a rally but bulls still have some work to do.
Gold managed to hold onto its gains after Fridays rally pushed price back above $1300 on a weakening USD. Expect to see more movement in the precious metal as the USD finds more volatility in coming days ahead of the FOMC meeting. Oil moved higher being supported by expectations for OPEC to extend production cuts until the end of 2019. Copper found some selling pressure although continues to edge up off key support longer term.
Cryptocurrencies were relatively unchanged as Bitcoin hovers just below the $4000 level currently trading at $3987.8 down 0.04%. Ethereum is at $138.06 down 1.01% while Ripple is trading at $0.31330 down 0.95%.
The ASX200 saw a sharp selloff around midday but managed to recover to end the day up 15.3 points to 6190.5. Metals and Mining, Resources and Materials sectors led the market higher while financials continued to weigh on the Index. Iron Ore price lifted giving a boost to FMG, GRR, MGX and other miners of the commodity. Rising stocks outnumbered declining ones by 576 to 520 and 387 ended unchanged.
The ASX200 is expected to open up 20 points although action may be contained as we approach futures rollover on Thursday.
ECONOMIC DATA OUT TODAY (AEDT)
AUD RBA Assit Gov Kent Speaks 9am
AUD Monetary Policy Meeting Minutes 11:30am
EUR Italian Trade Balance 8pm
GBP Average Earnings Index and Employment Rate 8:30pm
EUR German ZEW Economic Sentiment 9pm
USD Factory Orders 1am
GBP Parliament Brexit Vote Tentative
SPI200 INTRADAY LEVELS TO WATCH
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