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OVERNIGHT MARKET SNAPSHOT (as at 8:30am AEDT)
- SPI200 (Dec) overnight futures up 8 pts to 6773
- SP500 down 6.05 pts to 3087.03
- NASDAQ down 11.04 pts to 8464.28
- Dow Jones up 10.25 pts to 27,691.49
- FTSE100 down 30.84 pts to 7332.54
- DAX30 down 30.19 pts to 13,198.37
- GOLD futures US Session (December) down $6.90 to $1456.00 an ounce
- COPPER futures US Session (Comex Dec) down $0.019 to $2.6630 a pound
- OIL futures US Session (Nymex Dec) down $0.34 to $56.90 a barrel
- CRB Index down 1.86 pts to 179.41
- AUDUSD trading at 0.6851
- EURUSD trading at 1.1032
- GBPUSD trading at 1.2851
- USDJPY trading at 109.0600
- USD Index US Session (ICE Dec) down 0.141 to 98.060
US Stock Indexes opened weaker but soon got into the bullish swing again as buyers stepped into the action to support price mid session. Traders were off to a weak start after Asia came under fire from escalating tensions in Hong Kong. On top of that, concern for further delays to a trade deal had buyers on the sidelines on the open. Traders stepped back in as expectations are that a phase 1 deal will be done eventually as both sides have a bit to lose as economic growth data continues to weigh on both economies. The DOW closed up 0.04% while the broader SP500 was down 0.20% and the Nasdaq also ended down 0.13%. In Europe, major indexes ended the session lower with the broader Euro Stoxx 50 ending flat while the FTSE100 came under increased pressure thanks to a jump in the Pound after the Brexit Party said it would not contest previously Conservative held seats in Britain’s upcoming election which is a boost for PM Boris’s election hopes. Also weighing on the London FTSE was data out showing Britain’s economy growing at its slowest annual rate in nearly a decade.
The USD slid to give up some of the recent gains on concern that an end to the trade war was still not in sight after Trump comments over the weekend. The EURO managed to rally on the dollar weakness although failed to show conviction as selling pressure continued. The Euro looks ready to rollover again as sellers step in around 1.1041. The GBP was boosted by weakness in the dollar and on the Brexit news. Price action cleared out some recent lower highs and looks set for another run up to squeeze out further sellers. The AUD could not gain any traction on the USD weakness as trade news and weak China data continue to cap buyers. Selling pressure looks set to take price lower in the near term. The USDJPY lifted thanks to the rally in the dollar. Safe haven YEN buyers were contained as there was no further news on trade.
Gold again fell over as price was sold down through the European session into the US before buyers stepped in to squeeze out some of the sellers once the US share market gained some support. The short term trend is currently down with gold bulls coming under increased pressure. Crude Oil continues to be volatile as bulls and bears fight it out thanks to continued pressure from trade concerns and easing supplies that is bullish for price. Copper also continued to chop around with the general direction being lower. Price found support thanks to the fall in the USD although selling pressure picked up into the close.
Cryptocurrencies were knocked on the head overnight to end the session lower across the board. Bitcoin is currently trading at $8757 down 3.29% while Ethereum is at $186.33 down 1.94% and Ripple is at $0.27553 down 2.44%.
The ASX200 went from strength to strength yesterday as price opened strong then managed a final rally into the close with the index again matching up 10 points. At the close the index ended up 48.4 points to 6772.5 as buyers continued the charge. The Healthcare sector led the move higher followed by IT then Consumer Staples. The Metals and Mining and Resources sectors were lower on concern over the trade deal. Asia was lower with the YEN rallying on safe haven buying as fresh violence broke out in Hong Kong. Video footage circulated social media showing live rounds being fired at protestors by police. Rising stocks outnumbered declining ones by 644 to 527 and 338 ended unchanged.
The ASX200 is expected to open up 10 points as the SPI200 ran up into the close of the US.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD Business Confidence 11:30am
NZD Inflation Expectations 1pm
CNY New Loans 12th-14th
GBP Average Earnings, Claimant Count and Unemployment Rate 8:30pm
EUR German ZEW Economic Sentiment 9pm
USD FOMC Member Clarida Speaks 9:30pm
USD President Trump Speaks 4am
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SPI200 INTRADAY LEVELS TO WATCH
