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OVERNIGHT MARKET SNAPSHOT FOR MONDAY 20/01/20
- SPI200 (Mar) overnight futures up 36 pts to 7044
- SP500 up 12.81 pts to 3329.62
- NASDAQ up 31.81 pts to 9388.94
- Dow Jones up 50.46 pts to 29,348.10
- FTSE100 up 64.75 pts to 7674.56
- DAX30 up 96.70 pts to 13,526.13
- GOLD futures (Feb Contract) up $9.80 to $1560.30 an ounce
- COPPER futures (Comex Mar) down $0.001 to $2.846 a pound
- OIL futures US Session (Nymex Feb) up $0.02 to $58.54 a barrel
- CRB Index up 0.64 pts to 182.89
- AUDUSD trading at 0.6879
- EURUSD trading at 1.1092
- GBPUSD trading at 1.3016
- USDJPY trading at 110.1400
- USD Index US Session (ICE March) up 0.331 to 97.393
US Indexes again ended the session in new all time highs being supported by a surge in housing starts. Also supporting the action was increased optimism for earnings and signs of resilience in the Chinese economy. Yield on US debt pushed higher in a show of confidence while the USD also spiked higher in support of a risk on tone into equities. The timely resurgence of the US economy coupled with the phase 1 deal and low interest rates, is bringing traders in off the sidelines and there is only one place to go for yield…and that is shares. The positive mood has traders less concerned of a being the last person to invest before a recession. The DOW closed up another 0.17% while the broader SP500 was up 0.39% and the Nasdaq closed up 0.34% for the session. In Europe, key indexes ended the week on a positive note after an EU trade commissioner struck a positive tone on talks with Washington and on optimism over Chinas economy. Trade Commissioner Hogan said that he had a good exchange with his US counterpart on the EU’s desire to negotiate solutions for several open trade disputes.
Over the weekend, positive news out mentioned that China will negotiate with American companies and increase imports of US goods and products. The boost in purchases will be for $200 Billion over the next two years in exchange for the rolling back of some tariffs. Expect the news to give an extra boost to markets for the start of the new week.
The USD pushed higher during the European session and held onto the gains into the close of the US. The move took out resistance which may lead to further buyers stepping into the action this week. The EURO headed lower on the back of some weaker than expected data which may have triggered a risk on mood into the USD and the US economy. Bulls still see the US equity market as the place to be for yield in comparison to Europe. The GBP also moved lower on the Dollar strength along with the AUD. We expect that the AUD may find some support on the weekends trade news. The USDJPY is expected to continue to be supported by the dollar strength and the continued lack of a YEN safe haven bid.
Gold managed to push higher as buyers grind price back up to minor resistance levels around 1562 on the Spot price. We expect to see a lack of safe haven buyers continue to pressure price lower as traders continue to be risk on into shares. Crude Oil continues to hold above key support and is looking set to make its way higher being supported by a resilient Chinese economy and a potential increase in demand. Copper took a bit of a hit during the US session but was only giving up the gains made from Asian trading. Price is looking weaker and we expect that there may be some minor profit taking from weak hands into the commodity prior to finding support for another leg higher.
Cryptocurrencies were hit over the weekend to give up a lot of the gains from the recent push higher. Bitcoin is currently trading at $8733.1 down 1.96% while Ethereum is at $165.94 down 5.66% and Ripple is at %$0.23479 down 4.27%.
The ASX200 managed to again open strong Friday but then drifted lower into the close as traders locked away some gains into the US long weekend. In the end the Index ended up another 22.3 points to 7064.1 with the best performing sectors being Gold then Metals and Mining and Materials while the energy sector was lower for the day. Rising stocks outnumbered declining ones by 634 to 543 and 338 ended unchanged.
The ASX200 is expected to open up another 35/40 points as the SPI200 continued to put on gains during the after hours session. We may see another fade into the close as the US is closed for Martin Luther King Jr Holiday.
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ECONOMIC DATA OUT TODAY (AEDT)
JPY Revised Industrial Production 3:30pm
EUR German PPI 6pm
EUR German Buba Monthly Report Tentative
USD Bank Holiday
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SPI200 INTRADAY LEVELS TO WATCH
