MARKET SNAPSHOT (7:15am AEST)–
- SPI200 overnight futures down 30 pts to 6151
- SP500 down 17.56 pts to 2749.76
- NASDAQ down 68.56 pts to 7712.95
- FTSE100 down 70.96 pts to 7556.44
- DAX30 down 183.25 pts to 12511.91
- GOLD futures down $5.50 to $1259 an ounce
- COPPER futures down $1.30 to $304.90 a pound
- OIL futures up $0.10 to $65.81 a barrel
- CRB Index down 0.58 pts to 194.40
- AUDUSD trading at 0.7378
- EURUSD trading at 1.1606
- GBPUSD trading at 1.3248
- USDJPY trading at 109.9400
The US was lower as selling pressure ramped up on continued US-China trade war fears and on concerns of a flow on into corporate earnings. The DOW was down 196.10 points or 0.80% while the SP500 was down 0.63% and the Nasdaq down 0.88%. A weaker than expected US economic indicator reading along with a cut in earnings forecasts from German carmaker Daimler, saw confidence hit. In Europe shares had a very negative night with the German Dax index down 1.44%. Trade war concerns were the main focus along with Italian concerns reared is ugly head after two leading ‘eurosceptics’ were named to head Italian parliamentary finance committees.
Cryptocurrencies still hovering around the same levels with Bitcoin trading at $6732 down 0.31% with Ethereum at $525.48 down 1.42% and Ripple at $0.53331 down 1.35%.
The USD index was pressured lower on profit taking as weaker than expected economic data raised concerns about the US economy. The EUR found support around 1.1500/1.1550 and pushed higher while the GBP was buoyed as the Bank of England’s top economist unexpectedly supported an interest rate hike. The AUD struggled to rally along with the other major FX pairs as commodities were weaker.
Gold continued to push lower following the USD as US bonds rallied on safe haven buying. Copper also continued to find selling pressure from the China and US trade spat. Oil had a ‘nothing night’ to finish relatively flat as OPEC meetings begin where producers were expected to boost output to stabilize prices although Iran is holding out against a deal.
Locally, we saw another very strong session dragging in further buying above the 6150 level on the ASX200. The action has been a bit of a turn around from previous weakness and has caught a few traders off guard in the current negative environment. We may be seeing some ‘window dressing’ into the end of the financial year which would suggest there is a fall to come next month. Financials and Materials stocks led the way as a weaker AUDUSD increased interest into the local market from foreign investors.
The ASX200 is expected to open down 30 points after the SPI200 gave up some of the days gains through the overnight sessions.
ECONOMIC DATA OUT TODAY (AEST) –
JPY National Core CPI 9:30am
EUR Flash Manufacturing PMI and Flash Services PMI 6pm
All OPEC Meetings All Day
CAD CPI and Retail Sales 10:30pm
USD Flash Manufacturing PMI and Flash Services PMI 11:45pm
SPI200 INTRADAY LEVELS TO WATCH –