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OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 21/01/20 8:30am AEDT
- SPI200 (Mar) overnight futures up 5 pts to 7031
- SP500 Closed
- NASDAQ Closed
- Dow Jones Closed
- FTSE100 down 23.12 pts to 7651.44
- DAX30 up 22.81 pts to 13,548.94
- GOLD futures (Feb Contract) up $0.30 to $1560.60 an ounce
- COPPER futures (Comex Mar) up $0.002 to $2.847 a pound
- OIL futures US Session (Nymex Feb) up $0.12 to $58.66 a barrel
- CRB Index Closed
- AUDUSD trading at 0.6876
- EURUSD trading at 1.1097
- GBPUSD trading at 1.3009
- USDJPY trading at 110.1700
- USD Index US Session (ICE March) up 0.071 to 97.430
US Indexes were closed overnight for the Martin Luther King day. Trading volumes in Europe were low as Lunar New Year approaches in Asia and as traders set to focus on todays BOJ meeting and Thursdays ECB meeting. US agriculture secretary said that there is no need for further farm aid after the China trade deal which is a positive for markets. In Europe, key indexes were generally lower to start the week locking in some gains in a quiet session ahead of a data heavy week. Benchmark European indexes have risen this month as they bet on a recovery in global growth thanks to easing tensions between the US and China. The DAX continues to hover around all time highs while the FTSE index is poised to continue up and test into new highs.
The USD continued the move higher from the previous session during European trade but then gave back the gains during a quiet US session to end back where it started. It will be interesting to see if some bears come into the action up near key resistance around 97.79. The EURO again traded the reverse to the USD with initial weakness during the European session giving way to strength later in a move that seemed to be engineered to clear out a few buyers. The GBP also bounced after some initial weakness along with the AUD. The move in the AUD flushed out the buyers from the days session with price looking set for another push lower. The USDJPY swung between gains and losses in a range bound session. The pair is set to have a run up to the highs if the strength into equities continues today and the safe haven YEN traders remain on the sidelines.
Gold traded into the resistance zone around 1562 before the strength into the USD capped the gains and triggered some minor profit taking. The short term trend is still up from the 1550 area although price may be due to correct off current levels and reset before potential continuation higher. Crude Oil opened strong when it came back online after the weekend as the bulls were buoyant on China news. The first 30 minutes produced the highs and then is was down hill from there to close the gap. We are now watching to see how the buyers react and whether they can support price at current levels to continue the move up off the 57.50 zone. Copper also had a relatively uneventful session as initial gains were giving back into the US close although price is holding up around support levels and previous lows. The question now for bulls is whether the move down off the highs is enough to clear out some buyers and for price to reset ahead of a new leg higher.
Cryptocurrencies held their ground after being hit the previous session. Bitcoin is currently trading at $8670.3 up 0.26% while Ethereum is at $167.17 up 1.50% and Ripple is trading at $0.23350 up 0.30%.
The ASX200 opened positive yesterday but then the action flatlined for the rest of the session as traders were unwilling to add risk with the US closed overnight. In the end the Index ended up only 15.4 points to 7079.5 which was a lot weaker than the SPI200 was indicating prior to the open. The Metals and Mining, Materials and Resources sectors were the biggest movers while the Consumer Discretionary sector lagged. Falling stocks outnumbered advancing ones by 628 to 534 and 375 ended unchanged.
The ASX200 is expected to open up 5 points after the SPI200 held onto the day sessions gains in a quiet session overnight.
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ECONOMIC DATA OUT TODAY (AEDT)
JPY BOJ Outlook, Monetary Policy, Policy Rate and Press Conference Tentative
GBP Average Earnings Index and Unemployment Rate 8:30pm
EUR German ZEW Economic Sentiment 9pm
ALL WEF (World Economic Forum) Annual Meeting Day 1
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SPI200 INTRADAY LEVELS TO WATCH
