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OVERNIGHT MARKET SNAPSHOT (as at 8:30am AEDT)
- SPI200 (Dec) overnight futures up 35 pts to 6738
- SP500 up 28.48 pts to 3145.91
- NASDAQ up 85.83 pts to 8656.53
- Dow Jones up 337.27 pts to 28,015.06
- FTSE100 up 101.81 pts to 7239.66
- DAX30 up 111.78 pts to 13,166.58
- GOLD futures US Session (Feb Contract) down $18.00 to $1465.10 an ounce
- COPPER futures US Session (Comex Mar) up $0.086 to $2.749 a pound
- OIL futures US Session (Nymex Jan) up $0.77 to $59.20 a barrel
- CRB Index up 1.12 pts to 181.19
- AUDUSD trading at 0.6841
- EURUSD trading at 1.1060
- GBPUSD trading at 1.3140
- USDJPY trading at 108.5800
- USD Index US Session (ICE Dec) up 0.272 to 97.643
The US share market ended the week on a strong note as the spotlight went off the trade talks and onto US employment data. US job growth increased the most in 10 months which put to rest recession fears and triggered traders to take on more risk into equities. US 10-year bond yields rose while Gold fell and the dollar rallied showing the increase in investor appetite for risk as unemployment data dipped to 3.5% which is the lowest in nearly 50 years. The data showed steady wage growth which suggests that consumers are doing well and will continue to drive and support the US economic expansion. The DOW closed up 1.22% while the broader SP500 was up 0.91% and the Nasdaq ended up 1.00%. In Europe, Indexes were also supported by the better than expected data release and rallied hard to end the week with gains. Trump comments on trade also helped to boost optimism going into the weekend as he said that discussions with China were ‘moving right along’. Beijing officials said that they will waive import tariffs on some soybeans and port shipments from the US.
Heat has come out of the trade war news and is now focusing on the Trump impeachment. Democratic lawmakers could vote this week on articles of impeachment against the President although Trump denies wrongdoing and says the impeachment inquiry is a politically motivated witchhunt aimed at ousting him.
The USD moved higher on the back of employment data as the figures support the US Fed Reserves stance to keep interest rates on hold as the economy is doing better than a lot of analysts give it credit for which will mute the bears for a while. The EURO took a nosedive as the USD rallied after the data release dropping around 60 pips. The GBP was also hit on the dollar strength although buyers were still happy to support the currency pair awaiting further news on the polls and brexit. The AUD came under pressure from the dollar rally but buyers fought back into the close to make back a lot of the losses and trade comments. The USDJPY spiked on the data release but then fell back to where it started. We would expect to see buyers fight back to hold support as YEN safe haven traders exit positions.
Gold came under fire with safe haven traders exiting stage left as consumers are expected to continually support the US economy. Crude Oil rose sharply after OPEC and its allies agreed to extend output cuts by 500,000 barrels a day in early 2020. Copper rocketed higher being buoyed by trade comments and supported by a risk on tone from traders.
Cryptocurrencies starting to find some support as buyers edge prices higher. Bitcoin is currently trading at $7546.4 up 0.41% while Ethereum is at $151.47 up 1.96% and Ripple is at $0.23004 up 1.44%.
The ASX200 continued on from the previous sessions bullish action Friday to end 24 points higher to 6707 which capped off a negative week. Gains in the Healthcare, IT and Financial sectors helped to drag the index higher. Falling stocks outnumbered advancing ones by 546 to 530 and 336 ended unchanged.
The ASX200 is expected to open up 35/40 points as the SPI200 followed the US higher on strong employment data.
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ECONOMIC DATA OUT TODAY (AEDT)
CNY Trade Balance and USD-denominated Trade Balance Tentative
EUR German Trade Balance 6pm
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SPI200 INTRADAY LEVELS TO WATCH
