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OVERNIGHT MARKET SNAPSHOT FOR MONDAY 4/02/20 8:05am AEDT
- SPI200 (Mar) overnight futures down 3 pts to 6856
- SP500 up 23.60 pts to 3249.12
- NASDAQ up 122.47 pts to 9273.40
- Dow Jones up 143.78 pts to 28,399.81
- FTSE100 up 40.30 pts to 7326.31
- DAX30 up 63.22 pts to 13,045.19
- GOLD futures (April Contract) down $6.80 to $1581.10 an ounce
- COPPER futures (Comex Mar) down $0.011 to $2.506 a pound
- OIL futures US Session (Nymex Mar) down $1.57 to $49.99 a barrel
- CRB Index down 2.25 pts to 168.05
- AUDUSD trading at 0.6690
- EURUSD trading at 1.1060
- GBPUSD trading at 1.2996
- USDJPY trading at 108.6900
- USD Index US Session (ICE March) up 0.457 to 97.670
US Indexes managed to bounce back from Fridays beating as the bargain hunters come out to play. Buyers were supported on the open by better than expected ISM manufacturing data that beat previous releases. Buyers were capped during the session as concerns for the coronavirus continues as media reports the spread within China. The economic fallout for China from the virus is yet to be quantified but investors looked beyond the potential negative impacts of the coronavirus as historically, these events have proven to be a buying opportunity. The DOW closed up 0.51% while the broader SP500 was also up 0.73% and the Nasdaq bounced back up 1.34% for the session. In Europe, major Indexes also managed to recover as China opened and managed to contain the losses giving some comfort to investors. The Bid into safe haven assets faded as traders started to find some assurance in the current state of markets.
The USD Index bounced back hard being supported right from the open in Asian trade. Price managed to make back the losses from the fear driven selloff on Friday. Traders will now be watching to see if the dollar can continue to find a bid to extend the gains in a risk on tone. The EURUSD again mirrored the USD moves but in reverse as price fell from the start of the Asian session open. Buyers dis step in late in the US session to try to support but the move is yet to be proven and we suspect the pair has a lot of work to do to bring in further buyers to continue the trend up off 1.9090. The GBPUSD was demolished and all buyers ran for the hills to give up all the gains from the previous few sessions. The EU and UK expressed opposing views on a future relationship obviously raising concerns for Brexit. The EU was prepared to make a wide-ranging free trade agreement but stressed it would be conditional on the UK retaining various EU rules to ensure a ‘level playing field’. The AUDUSD spent the Asian and then the European and US sessions consolidating the lows. The pair is right down at a daily bid zone around 0.6670/0.6700 so we may see some buyers starting to take a nibble at the pair. The USDJPY rallied as the USD found buyers and the safe haven YEN trade faded for now.
SPOT GOLD eased as safe haven traders exited some long positions. It was a one way street from the open of the Asian session as news filtered through the market that China will do what it takes to support their market…although in the past any attempts to deter selling has failed miserably. Crude Oil pushed down below the 50 a barrel mark but put in a last ditched effort from buyers to end above the level. The short term trend is still lower so we need to see buyers take out some minor lower highs to have some confidence we will see higher levels. OPEC did say that they will cut production to support price but the bears are strong…see what tonight brings once the news filters through. Copper is putting in an effort to hold the current lows as safe havens saw sellers. As with Oil, Copper will need to put in a big effort from the buyers to change the tone.
Cryptocurrencies hold their ground and consolidate the recent gains. Bitcoin is currently trading at $9331.4 down 1.13% while Ethereum is at $191.24 down 0.19% and Ripple is at $0.25403 down 0.08%.
The ASX200 started the session with a bit of carnage as traders had all weekend to stew over the selloff in the US Friday night. The index opened down over 100 points and continued to see weakness all session. In the end the ASX200 ended down 93.9 points to 6923.3 with the Energy sector (down 4.05%) and Mining and Resources stocks taking most of the heat. Falling stocks outnumbered advancing ones by 1023 to 248 and 250 ended unchanged.
The ASX200 is expected to open flat but find some bargain hunters as the US and Europe bounced back from the beating Friday night.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD Cash Rate and RBA Statement 2:30pm
EUR PPI Data 9pm
USD Factory Orders 2am
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SPI200 INTRADAY LEVELS TO WATCH
