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OVERNIGHT MARKET SNAPSHOT
- SPI200 (Sep) overnight futures up 19 pts to 6750
- SP500 up 22.19 pts to 3025.86
- NASDAQ up 91.67 pts to 8330.21
- Dow Jones up 51.47 pts to 27,192.45
- FTSE100 up 60.01 pts to 7549.06
- DAX30 up 57.80 pts to 12,419.90
- GOLD futures US Session (December) up $4.70 to $1432.20 an ounce
- COPPER futures US Session (Comex Sept) down $0.0130 to $2.6900 a pound
- OIL futures US Session (Nymex Sep) up $0.18 to $56.20 a barrel
- CRB Index up 0.73 pts to 177.16
- AUDUSD trading at 0.6911
- EURUSD trading at 1.1128
- GBPUSD trading at 1.2384
- USDJPY trading at 108.6800
- USD Index (ICE Sept) at 97.725 up 0.173
US Indexes managed to make back the previous sessions losses, on Friday, as markets ended the week on a positive note. Buyers were supported by some positive earnings results along with some better than expected GDP data that came in up 2.1% beating expectations for up 1.8% for the quarter. The data pretty much cements the expectations for 0.25% cut from the Fed on Thursday as it is neither ‘good nor bad’. Traders will also be focused on negotiations between the US and China during the week for some sort of light at the end of the tunnel. The DOW closed up 0.19% while the broader SP500 was up 0.74% and the Nasdaq led the charge ending up 1.11%. In Europe, markets were higher Friday as large cap stocks supported the indexes after some better than expected earnings results. Buyers saw some value after the previous sessions big selloff.
The Trump administration has ruled out intervening in currency markets to lower the value of the USD. Trump has repeatedly tweeted that he is concerned of other countries weakening their own currencies and would like to see the USD lower. Trump has hinted at ‘something’ to stem the tide of dollar strength as he has publicly complained that other currencies are gaining an unfair trade advantage.
The USD Index moved higher after better than expected GDP data as traders may be in a holding pattern until they receive further direction from the US Fed Reserve later in the week. Traders will be trying to weigh up whether a rate cut may be the start of a easing cycle or just a pre-emptive move from the Fed to short term economic weakness. The Euro continued to be pressured lower into the start of the US session Friday where some buyers managed to lift price up off the lows. The GBP fell over on the back of the US data release as the USD rallied. With the strength in the USD and uncertainty over Brexit, the GBP may be heading towards the 1.2000 zone if major lower highs continue to pressure price. The AUD also continued to struggle with price falling over during the European session. With commodity indexes continuing to come under pressure, the pair may need some news on trade for support. The USDJPY saw a relatively choppy session with buying failing to kick price higher after the US GDP release.
Gold found some buyers willing to support price off the 1414 support zone even as the USD finds strength. Safe haven buyers may also be waiting for the Powells statement on interest rates and the economy as he treads a fine line to support the stock market. Oil had a pretty contained session as traders made back the losses from an initial spike lower after the GDP release as lower supply supports price and weakness from a higher USD. Copper continued to edge lower on dollar strength as price holds lower highs into a support zone around 2.6780.
Cryptocurrencies hold onto weakness as Bitcoin is currently trading at $9620.3 up 0.52% while Ethereum is trading at $203.77 down 2.26% and Ripple is at $0.30642 down 1.10%.
The ASX200 opened lower Friday and continued to find weakness into the close as the Index ended down 24.6 points to 6793.4. The Telecom and IT sectors were the weak links for the day while the Resources, Metals and Mining and Materials ended in the green. Falling stocks outnumbered advancing ones by 668 to 533 and 380 ended unchanged.
The ASX200 is expected to open up around 20 points as the SPI200 made its way higher from the days close in a positive over night session.
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ECONOMIC DATA OUT TODAY (AEST)
JPY Retail Sales 9:50am
EUR Spanish Flash CPI 5pm
GBP Mortgage Approvals 6:30pm
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SPI200 INTRADAY LEVELS TO WATCH
