OVERNIGHT MARKET SNAPSHOT (as at 7:30am AEDT)
- SPI200 (Dec) overnight futures up 42 pts to 6714
- SP500 up 5.77 pts to 3010.29
- NASDAQ up 66 pts to 8185.80
- Dow Jones down 28.42 pts to 26,805.53
- FTSE100 up 67.51 pts to 7328.25
- DAX30 up 73.91 pts to 12,872.10
- GOLD futures US Session (December) up $9.70 to $1505.40 an ounce
- COPPER futures US Session (Comex Dec) down $0.005 to $2.6670 a pound
- OIL futures US Session (Nymex Nov) up $0.14 to $56.11 a barrel
- CRB Index up 0.41 pts to 177.71
- AUDUSD trading at 0.6818
- EURUSD trading at 1.1102
- GBPUSD trading at 1.2847
- USDJPY trading at 108.6600
- USD Index US Session (ICE Dec) up 0.217 to 97.455
US Stock Indexes were again focused on positive earnings as the market was buoyed by upbeat results from Microsoft and Daimler which offset disappointing results from Twitter and other companies. Traders are focused now on the idea that earnings my be in a ‘trough’ which would mean that any steps forward on trade, which continues to drag on growth, would be a positive for Indexes going forward. The SP500 dipped during the session as US Vice President Mike Pence accused China of attacking ‘rights and liberties’ in Hong Kong but also said they do not seek confrontation from its main economic rival. The DOW closed down 0.11% while the broader SP500 was up 0.19% and the Nasdaq ended up 0.81%. In Europe, Indexes were strong as buyers were supported by some stronger than expected earnings. The Index was also supported by strength in automakers, healthcare stocks and generally exporters. Data out showed that business activity stagnated in the eurozone while ECB president Draghi’s last speech, as his tenure comes to an end, gave no surprises for the market. Brexit is also brought back into question after last weeks positive news as a UK election may be on the cards for December.
New orders for US made goods fell more than expected in September and shipments also declined which is continued signs that business investment remains weak due to continued trade war pressure although the weakness has not flowed over to the jobs market. The number of US citizens filing for unemployment benefits unexpectedly fell last week even as hiring and growth has slowed.
The USD rallied thanks to better than expected data and as the Selling into the Euro and Pound triggered buying into the dollar. The EURO moved lower in a choppy session as sellers came into the action ahead of the ECB announcement and as Brexit took another hit. The GBP spiked lower after PM Boris Johnson said he was asking parliament to approve a national election on Dec 12th in an effort to break the political deadlock over Brexit and ensure the UK leaves the EU. This is seen as a negative for the Pound as expected swings in polling would create uncertainty. The AUD continued to come under pressure with no love from buyers. Price has extended into a zone where we may see a reaction up from buyers as recent short sellers lock away some gains. The USDJPY was stuck in a range overnight as price found support from strength into the USD but also some safe haven YEN buying to cap price on the upside.
Gold backed up yesterdays buying with another move higher as continued Brexit uncertainty had safe haven buyers support the action. The move has potential to continue higher as price is breaking up out of contraction. Crude Oil continued the move higher as bulls remain in charge for now as demand continues to grow. Copper held within a range for the European and US sessions but may start to retrace some of the bullish move up from the previous session.
Cryptocurrencies had a quieter session as prices were relatively steady after the recent fall. Bitcoin is currently holding at $7463.4 down 0.42% while Ethereum is trading at $161.77 up 0.61% and Ripple is at $0.27869 up 4.25%.
The ASX200 opened strong yesterday but could not hold onto the gains as price faded all the way into the close. Early in the session the index was up 41 points but then closed up only 20.5 points to 6693.6. The Consumer Discretionary and Energy sectors were the strongest while Info Tech lagged by over 1%. Rising stocks outnumbered declining ones by 582 to 569 and 323 ended unchanged.
The ASX200 is expected to open up 40 points as the SPI200 reversed the days trend to be pumped higher overnight. The move up in the SPI200 overnight looks a bit suspect as it was not matched in other markets so the tone may be more contained on the ASX open.
ECONOMIC DATA OUT TODAY (AEDT)
EUR German Consumer Climate 5pm
EUR German Business Climate 7pm
USD Revised Consumer Sentiment and Inflation Expectations 1am
SPI200 INTRADAY LEVELS TO WATCH