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OVERNIGHT MARKET SNAPSHOT FOR MONDAY 10/02/20
- SPI200 (Mar) overnight futures up 7 pts to 6962
- SP500 down 18.07 pts to 3327.71
- NASDAQ down 51.64 pts to 9520.51
- Dow Jones down 277.26 pts to 29,102.51
- FTSE100 down 38.09 pts to 7466.70
- DAX30 down 61.01 pts to 13,513.81
- GOLD futures (April Contract) up $3.40 to $1573.40 an ounce
- COPPER futures (Comex Mar) down $0.047 to $2.546 a pound
- OIL futures US Session (Nymex Mar) down $0.63 to $50.32 a barrel
- CRB Index down 0.35 pts to 170.12
- AUDUSD trading at 0.6673
- EURUSD trading at 1.0946
- GBPUSD trading at 1.2892
- USDJPY trading at 109.7500
- USD Index US Session (ICE March) up 0.212 to 98.593
US Indexes ended the session lower as price action finally took a breather and bulls locked away some gains. US employment data came out stronger than expected although the unemployment rate moved up from 3.5% to 3.6% which was enough to see traders book some profits and take some risk off the table. Coronavirus fears remained but the impact on markets has lessened so was not the main focus of traders as US indexes are well and truly extended at current levels. The US still remains the place to be for yield as the economy remains on a strong footing which was highlighted in a spate of upbeat economic data during the week. The DOW closed down 0.94% while the broader SP500 was down 0.54% and the Nasdaq was also down 0.54% for the session. In Europe, Indexes were weighed down by some underwhelming earnings reports and lingering concerns for the economic damage from the coronavirus on the global economy. There is still concerns that we do not know the full extent of the spread of the virus within China so its difficult to know how China will be affected.
The USD Index continued higher being supported by the strong employment data. Funds remain bullish on the US economy as data continues to support a soft landing although the wage growth data capped the gains as traders expect inflation to be held in check below target. The EURUSD continued to hold lower levels with the pressure from the rising USD with the 1.0890 One well in sight. The GBPUSD also continues to fall after Boris has clashed with the EU over Brexit terms. The clash is seen by traders as a sign of what is to come and the Pound is not happy and finding increased pressure from sellers. The AUDUSD came under fire as news continues to flow on the coronavirus leaving traders guessing on the future strength of the Chinese economy and how that will affect demand for Aussie products. The US Fed Reserve also showed some concern for effects of the virus as the death toll surpasses SARS. The USDJPY started to hold some lower levels as a safe haven bid into the YEN outweighed pressure from the Dollar rally.
SPOT GOLD rallied on a safe haven bid into the precious metal while Aussie gold was a lot stronger being helped along by the fall in the AUD. We expect to see local gold stocks do well on expectations that the gold move higher will continue. Crude Oil edged lower back into support around the $50 mark. It will be interesting to see if buyers can step back into the action but a rally will depend on news flow and virus concerns. Copper also edged lower as recent buyers changed their tune and continued concern over the affects of the virus on growth capped gains.
Cryptocurrencies move higher as Bitcoin cracks the 10,000 mark. The move has the bulls excited and looking for another major rally across the board. Bitcoin is currently trading at $10,081.2 up 2.32% while Ethereum is at $226.16 up 0.58% and Ripple is at $0.28056 up 1.14%.
The ASX200 sold off from the opening bell on Friday and did not look back as sellers kept the pressure on into the close. The Index ended down 26.6 points to 7022.6 managing to lift slightly off the lows in the final matchoff at 4:10pm. The Gold sector was the biggest mover for the session ending up 1.68% while Consumer Staples was the only other gainer. The Energy and Mining/Resources sectors were the major drags on the Index for the day. Falling stocks outnumbered advancing ones by 674 to 510 and 327 ended unchanged.
The ASX200 is expected to open up 5 points then we expect to see some sellers come into the action to lock away some gains.
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ECONOMIC DATA OUT TODAY (AEDT)
CNY CPI and PPI data 12:30pm
EUR Italian Industrial Production 8pm
USD FOMC Member Bowman Speaks 12:15am
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SPI200 INTRADAY LEVELS TO WATCH
