OVERNIGHT MARKET SNAPSHOT (as at 7:30am AEDT)
- SPI200 (Dec) overnight futures down 23 pts to 6700
- SP500 down 2.53 pts to 3036.89
- NASDAQ down 49.13 pts to 8276.85
- Dow Jones down 19.26 pts to 27,071.46
- FTSE100 down 25.02 pts to 7306.26
- DAX30 down 2.09 pts to 12,939.62
- GOLD futures US Session (December) down $4.80 to $1491.00 an ounce
- COPPER futures US Session (Comex Dec) up $0.009 to $2.6920 a pound
- OIL futures US Session (Nymex Dec) down $0.26 to $55.55 a barrel
- CRB Index up 0.09 pts to 178.38
- AUDUSD trading at 0.6864
- EURUSD trading at 1.1111
- GBPUSD trading at 1.2862
- USDJPY trading at 108.8600
- USD Index US Session (ICE Dec) down 0.064 to 97.463
US Stock Indexes faltered and came under pressure, after markets pushed into new intraday highs again, as traders are tentative ahead of the FOMC rate decision tonight. Trade news weighed on the action as a US administration official said that Washington and Beijing are continuing to work on an interim trade agreement, but it may not be completed in time for the two countries to sign in Chile next month. The DOW closed down 0.07% while the broader SP500 was down 0.08% and the Nasdaq ended down 0.59%. In Europe, Indexes broke a six day winning streak to also end the session lower. Weaker than expected earnings pressured sentiment along with trade news which hinted at delays to the phase 1 trade deal. On the Brexit front, the FTSE100 index came under pressure on news that Britain may be heading to elections in December with the latest news out that a date is set for Dec 12th to attempt to break the deadlock and force a Brexit deal.
Traders were contained overnight as markets trade at new all time highs ahead of the FOMC meeting tonight where its widely expected that rates will be cut 25 basis points. The more important market movers will come from the FOMC Press Conference and what hints the Fed drops for interest rates going forward.
The USD dipped against major currency pairs as traders ‘squared up’ positions and risk ahead of the interest rate announcement. Traders will be focused on what the Fed says regarding further rate cuts and we expect to see buying pressure if the Fed hints at a reluctance to cuts rates more. This may translate into pressure on the equity markets if a trade deal continues to be delayed. The EURO initially pushed lower to retest the 1.1073 level before rallying as the dollar began to selloff. The GBP initially dipped on election news but held up well and found some support through the 1.2805 zone before rallying on dollar weakness. It will be interesting to see how the currency pair digests the elections going into December 12th. The AUD found buyers from the ASX open yesterday on trade optimism and the buying pressure continued into the US close as shorts were squeezed out of the action. The next stop for the Aussie is up around 0.6890. The USDJPY was more contained as dollar weakness continued to be capped by YEN selling in a choppy session.
Gold again edged lower but sellers were contained around the 1490 mark as safe haven traders mulled over potential delays to a trade deal signing. A rally may come tonight if further rate cuts are taken off the table. Crude Oil was initially on a move lower until the US open where price action turned on a dime and spiked higher to make back a lot of the lost ground to sellers. Copper brushed aside a potential trade deal delay and continued to rally as the dollar fell and looks set to test highs at 2.7050.
Cryptocurrencies remained supported as news circulated of Chinas serious interest in Cryptocurrencies. Bitcoin is trading at $9448.1 up 0.54% while Ethereum is showing more strength and is currently at $191.88 up 4.66% and Ripple also up and trading at $0.29974 up 1.13%.
The ASX200 had a choppy session yesterday as price swung between gains and losses as traders were happy to remain on the sidelines ahead of the Aussie Inflation data and the USD Fed Funds Rate release. The Index ended up only 4.7 points to 6745.4 with the IT and Metals and Mining Sectors doing the best while the Gold Sector was the biggest drag on the action. Falling stocks outnumbered advancing ones by 623 to 538 and 358 ended unchanged.
The ASX200 is expected to open down 20 points as the SPI200 continued to push lower overnight continuing on from the days session. Traders may be contained ahead of the Inflationary CPI data at 11:30am today.
ECONOMIC DATA OUT TODAY (AEDT)
JPY Retail Sales 10:50am
AUD CPI Data 11:30am
AUD HIA New Home Sales Tentative
EUR German Prelim CPI Tentative
EUR German Unemployment Change 7:55pm
USD ADP Non-Farm Employment Change 11:15pm
USD Advance GDP 11:30pm
CAD BOC Rate Statement and Overnight Rate 1am
USD Crude Oil Inventories 1:30am
USD Fed Funds Rate and FOMC Statement 5am
USD FOMC Press Conference 5:30am
SPI200 INTRADAY LEVELS TO WATCH