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OVERNIGHT MARKET SNAPSHOT (as at 8am AEDT)
- SPI200 (Dec) overnight futures up 22 pts to 6881
- SP500 up 13.14 pts to 3153.66
- NASDAQ up 57.24 pts to 8705.18
- Dow Jones up 42.32 pts to 28,164.00
- FTSE100 up 26.64 pts to 7429.78
- DAX30 up 50.65 pts to 13,287.07
- GOLD futures US Session (Feb Contract) down $6.00 to $1461.40 an ounce
- COPPER futures US Session (Comex Mar) up $0.003 to $2.700 a pound
- OIL futures US Session (Nymex Jan) down $0.33 to $58.08 a barrel
- CRB Index down 0.75 pts to 180.35
- AUDUSD trading at 0.6776
- EURUSD trading at 1.1000
- GBPUSD trading at 1.2906
- USDJPY trading at 109.5500
- USD Index US Session (ICE Dec) up 0.158 to 98.328
The bulls were out in force again as US Stock Indexes continued to move higher ahead of the Thanksgiving long weekend. Buyers were supported by some unexpectedly positive economic data showing that US economic growth picked up slightly in the third quarter rather than slowing as was originally thought. There are signs that business investment may be picking up while the number of Americans filing for unemployment benefits dropped last week showing continued labour market strength. The data is painting a positive picture of an economy that has had to overcome a prolonged trade war and easing tailwinds of tax cuts. It also validates the optimistic tone from Fed Chair Powell earlier this week who said ‘at this point in the long expansion, I see the glass as much more than half full’. The DOW closed up 0.15% while the broader SP500 was up 0.42% and the Nasdaq ended up 0.66%. In Europe, Indexes also continued with the positive mood to move higher on the open and hold onto the gains into the close. The German DAX index is nearing new all time high levels as the confidence in a trade deal being done is supporting buyers. Also helping the move up is the expectation that the worst is over and the slowdown in economic growth is easing in the EU. Hopes that a Brexit deal will finally be done and will be an orderly exit has also supported the move up.
The USD rallied into the open of the US session after the positive data release. The move continued the trend up for the Dollar index as a rate cut is off the table in the near term. The EURO continued to wobble and moved lower under the USD pressure. The GBP rallied off recent lows around 1.2830 to remain in the range from 1.2770 to 1.3000 as price focuses on the tightening of the gap between the Conservatives and Labour for the upcoming elections and what that means to Brexit. The AUD continued to edge lower as traders digest a potential QE from the RBA. The USDJPY rallied hard thanks to the strengthening Dollar and also the exit of safe haven YEN buyers after the US data release.
Gold found selling pressure from the open of the Asian session until the close of the US session as the demand from safe haven buyers waned. The move lower gave up the recent gains from the previous sessions rally in the spot market. Crude Oil cleaned out a lot of recent buyers on a spike lower after US oil inventories came out a lot more positive than expected. Copper managed to lift early in European trade but then later came under pressure as the USD rallied. The short term trend continues to be up off support around 2.6150.
Cryptocurrencies were on the move up overnight as buyers decided to tip their toes back into the action. Bitcoin is currently trading at $7559.5 up 6.12% while Ethereum is at $154.12 up 5.72% and Ripple is trading at $0.22725 up 3.96%.
The ASX200 backed up the start of the week with another positive session yesterday as the bulls came out to play. The index rallied from open until close to end up 63.1 points to 6850.6…within striking distance to new all time highs. Buyers had a clear run with no selling willing to stand in the way of the freight train as all sectors ended with gains with Gold and Telecom Services leading the charge. Rising stocks outnumbered declining ones by 638 to 503 and 356 ended unchanged.
The ASX200 is expected to open up 20/25 points as the SPI200 continued with the bullish mood overnight to close on its highs. The US is closed for trade tonight and will have a shortened session Friday for Thanksgiving so we may see a contained few sessions into the weekend.
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ECONOMIC DATA OUT TODAY (AEDT)
NZD ANZ Business Confidence 11am
AUD Private Capital Expenditure 11:30am
EUR German Prelim CPI All Day
USD Bank Holiday All Day
CAD Current Account 12:30am
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SPI200 INTRADAY LEVELS TO WATCH
