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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 30/01/20 8:20am AEDT
- SPI200 (Mar) overnight futures down 10 pts to 6954
- SP500 down 2.84 pts to 3273.40
- NASDAQ up 5.48 pts to 9275.16
- Dow Jones up 11.60 pts to 28,734.45
- FTSE100 up 2.88 pts to 7483.57
- DAX30 up 21.31 pts to 13,345.00
- GOLD futures (April Contract) up $6.80 to $1582.60 an ounce
- COPPER futures (Comex Mar) down $0.018 to $2.561 a pound
- OIL futures US Session (Nymex Mar) down $0.37 to $53.11 a barrel
- CRB Index down 0.84 pts to 172.95
- AUDUSD trading at 0.6751
- EURUSD trading at 1.1005
- GBPUSD trading at 1.3014
- USDJPY trading at 109.0600
- USD Index US Session (ICE March) up 0.080 to 97.915
US Indexes started the session on the back foot after some negative data on the Goods Trade Balance triggered sellers into action. Price soon recovered to trade on the highs until the US Fed Reserve left interest rates unchanged and left traders hanging offering no new guidance from the previous statement. US Bond yields fell into the close as traders expected a more upbeat statement from the Fed on US growth and the outlook for inflation picking up. The Fed also did not give new guidance about its current practice of buying $60 billion monthly of US Treasury bills to ensure adequate short-term liquidity in bank funding markets which was a major concern that triggered the inversion of the yield curve. What surprised analysts was the lack of comment on the Coronavirus and affects it may have on growth but this may be expected as the main focus is on the jobs market which is a slow moving beast. The DOW closed up 0.04% while the broader SP500 was down only 0.09% and the Nasdaq also closed up 0.06% for the session. In Europe, major Indexes took a breather after bouncing back from the virus selloff in Tuesdays session. The FTSE and the DAX both started the session on a positive note and managed to weather the selloff on the US open to end with minor gains. Buyers were buoyed by some positive results but the virus fears and what that will mean to growth in the worlds second largest economy, continued to keep any gains in check.
The USD was moving higher into the start of the US session until the negative data release brought in some sellers to start the march lower. Sellers added to the move after the Fed interest rate release although the trend is still holding higher for now. Watching now to see if the dollar starts to find more selling pressure to start a squeeze on longer term buyers. The EURO moved off the lows at the start of the US session trading inversely to the USD. Price did test the major support level at 1.0990 so watching now to see if buyers can make a stand to defend the zone and put in a higher low. The GBP also rallied on the Dollar weakness putting in a higher low that we expect will bring in some buyers to lift price off support levels. The AUD was under pressure right through the European session showing continued concern on virus effects on China’s growth and demand for Aussie products. The USDJPY struggled to kick on as the USD came under pressure during US trading. We are watching to see if price can hold above the 109.000 zone to hold a higher low although it is not looking promising at this stage.
Gold gained back some lost ground during European trade and continued during the US session as the Dollar came under pressure. We expect that the move will drag in some further gold bugs during Asian trade. Crude Oil came under pressure as US oil inventories came out a lot stronger than expected. Pressure looks set to continue which may trigger OPEC into action on further production cuts. Copper continued its downward move on virus concerns. We expect that the pressure will continue until the virus looks like it is being contained and the economic damage can be assessed.
Cryptocurrencies extended their move higher and added to the gains finding a safe haven affect away from shares. Bitcoin is currently trading at $9390.4 up 4.04% while Ethereum is at $176.49 up 3.01% and Ripple is lagging at $0.23741 up 0.67%.
The ASX200 opened stronger yesterday and held the gains into the close to bounce back from the previous sessions beating. At the close the index was up 37 points to 7031.5 but still has some way to go to make up all of the lost ground from 7100. The Healthcare and IT sectors were the biggest movers while Gold and Consumer Staples were both down over 2%. Rising stocks outnumbered declining ones by 669 to 484 and 375 ended unchanged.
The ASX200 is expected to open down 10 points as the SPI200 was range bound overnight between the day sessions highs and lows.
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ECONOMIC DATA OUT TODAY (AEDT)
CNY Bank Holiday All Day
AUD Import Prices 11:30am
EUR German Prelim CPI All Day
EUR German Unemployment Change 7:55pm
EUR Unemployment Rate 9pm
GBP BOE Monetary Policy Report, Official Bank Rate and Monetary Policy Summary 11pm
USD Advance GDP and Unemployment Claims 12:30am
EUR German Buba President Weidmann Speaks 5am
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SPI200 INTRADAY LEVELS TO WATCH
