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OVERNIGHT MARKET SNAPSHOT (as at 8am AEDT)
- SPI200 (Dec) overnight futures up 28 pts to 6900
- SP500 Closed
- NASDAQ Closed
- Dow Jones Closed
- FTSE100 down 13.35 pts to 7416.43
- DAX30 down 41.49 pts to 13,245.48
- GOLD futures US Session (Feb Contract) up $1.30 to $1462.10 an ounce
- COPPER futures US Session (Comex Mar) down $0.021 to $2.675 a pound
- OIL futures US Session (Nymex Jan) up $0.13 to $58.24 a barrel
- CRB Index Closed
- AUDUSD trading at 0.6767
- EURUSD trading at 1.1010
- GBPUSD trading at 1.2911
- USDJPY trading at 109.5200
- USD Index US Session (ICE Dec) up 0.007 to 98.295
The US Stock Indexes were closed due to Thanksgiving Holidays leaving European shares to fend for themselves. Trump took the opportunity to sign into legislation support for the Hong Kong protesters which triggered a weak open in Europe as traders were happy to lock away some gains after the previous few days rally. China replied saying that they would retaliate to the news leaving traders guessing to the extent of the response. The move dented risk appetite for the session as China warned the US that it would take ‘firm counter measures’ and any attempt to interfere in the Chinese-ruled city were ‘doomed to fail’. In Europe, Indexes started off the session on the back foot opening weak, but then made back some of the losses into the close as fears eased in the absence of signs that negotiations for a trade deal had been jeopardized.
The US legislation requires the State Department to certify, at least annually, that Hong Kong is autonomous enough to justify favorable US trading terms. It also threatens sanctions for human rights violations. Hong Kong’s Beijing-backed government said the legislation sent the wrong signal to demonstrators and “clearly interfered” with the city’s internal affairs.
The USD lost ground through the Asian session, after news broke of Trumps signing of the legislation, but them bounced back during European trade as the bulls kept the trend moving higher. The EURO rallied on the back of the news but then just as quickly turned to give back the gains to end flat as the USD rallied. The GBP also came under pressure during European session as the dollar rallied. The move found support around 1.2905 which we expect to hold and see another run up to test towards 1.2980 highs. The AUD continued to come under pressure and move lower as the Hong Kong news now brings into question the trade deal if things were to escalate between the US and China as traders await the response. The USDJPY moved higher on the continued USD strength.
Gold was fairly contained as price was locked in a range between 1454 and 1458 on the spot market. Crude Oil also lacked some direction as the moves were due to some intraday trading as price moved down to test previous lows and then spiked into the close on the back of some short covering. Copper saw a negative session as buyers were happy to remain on the sidelines as they await a response from China on Hong Kong. Buyers took the opportunity to lock away some gains from the recent rally up off support.
Cryptocurrencies were relatively unchanged for the muted session with the US Thanksgiving holiday as Bitcoin held around $7593.9 up 0.50%, Ethereum is trading at $153.35 down 0.44% and Ripple is at $0.22781 up 0.42%.
The ASX200 managed to follow on with another positive day yesterday although the gains were limited going into the US holiday. At the close the Index was up 13.4 points to 6864. The Telecom Services Sector led the way up 2.89%, followed up by Healthcare which was up only 0.77%. The Gold sector gave up some of yesterdays gains although Gold, in Aussie Dollar terms, is looking better. Asian shares were weaker for the session as Japanese retail figures slumped the most since 2015. Rising stocks outnumbered declining ones by 603 to 502 and 352 ended unchanged.
The ASX200 is expected to open up 25 points as the SPI200 moved up off the day sessions close to push through into new highs. Expect the ASX200 to test into new all time highs but the question will be whether the Index can end the session at the new highs.
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ECONOMIC DATA OUT TODAY (AEDT)
JPY Tokyo CPI and Unemployment Rate 10:30am
AUD HIA New Home Sales Tentative
AUD Private Sector Credit 11:30am
EUR German Retail Sales 6pm
EUR German Unemployment Change 7:55pm
GBP Mortgage Approvals and Net Lending to Individuals 8:30pm
EUR CPI Data and Unemployment Rate 9pm
CAD GDP 12:30pm
CNY Manufacturing and Non-Manufacturing PMI 12pm
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SPI200 INTRADAY LEVELS TO WATCH
