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OVERNIGHT MARKET SNAPSHOT FOR MONDAY 17/02/20
- SPI200 (Mar) overnight futures down 17 pts to 7049
- SP500 up 6.22 pts to 3380.16
- NASDAQ up 19.21 pts to 9731.18
- Dow Jones down 25.23 pts to 29,398.08
- FTSE100 down 42.90 pts to 7409.13
- DAX30 down 1.22 pts to 13,744.21
- GOLD futures (April Contract) up $7.60 to $1586.40 an ounce
- COPPER futures (Comex May) down $0.014 to $2.599 a pound
- OIL futures US Session (Nymex Mar) up $0.63 to $52.05 a barrel
- CRB Index up 0.68 pts to 172.95
- AUDUSD trading at 0.6714
- EURUSD trading at 1.0831
- GBPUSD trading at 1.3047
- USDJPY trading at 109.7800
- USD Index US Session (ICE March) up 0.079 to 99.037
US Indexes were mixed to end the week as the broader market SP500 ended higher along with the Nasdaq while the DOW ended slightly lower. We expect the long weekend capped the action as traders were reluctant to add risk going into a three day weekend on concerns for a potential shift up in gear of negative coronavirus news. Traders seem content to bet that the market has seen the worst of the virus and the number of new cases will decline. A news report late in the session that the White House is considering a tax incentive for Americans to buy stocks and keep the party going, helped to buoy the action. The DOW closed down 0.09% while the broader SP500 continued to gain up 0.18% and the Nasdaq ended up 0.20% for the session. In Europe, the DAX made new all time highs during the session but ends in the red after some of negative corporate updates. Coronavirus fears continued to cap new buyers into the weekend as traders are looking for a clearer assessment of the impacts to the Global Economy.
The USD Index gained on a safe haven bid into US bonds ahead of the long weekend after retail sales data came out slightly weaker than expected. The US economy relies on consumer spending to continue to support a moderate expansion so any signs that spending is slowing will be cause for concern. The EURUSD traded inversely to the dollar as price was pushed lower into the close to continue the trend down. If buyers do not step into the action in a serious way, the Euro looks set to move down to the 1.0450 zone over the longer term. The GBPUSD is looking constructive as selling pressure is being soaked up by buyers after price reacted lower off the 1.3070 area. Watching for price to hold above the 1.3000 zone and buyers make another run at 1.3070. The AUDUSD has seen some choppy action towards the end of the week as buyers soak up sellers around the 0.6700 mark. If buyers can hold the level, expect to see a squeeze higher as recent sellers are pushed out of the action. A move higher will depend on whether traders believe that the coronavirus spread is being contained by authorities and any impact on Chinas economy will be muted. The USDJPY initially reacted lower on the US retail sales data release and held the lows into the close against the rally back into the USD showing a safe haven bid into the YEN. The move was more of a hedge into the weekend.
SPOT GOLD rallied to end on its highs for the session as price continues to find a safe haven bid. The precious metal gained after economic data showed that US consumer spending appeared to have slowed further in January. Crude Oil gained to end the session on its highs and notched up its first weekly gain since early January as key support continues to hold. Copper edged lower throughout the European and US sessions. Price is in pullback mode from recent highs so watching for another higher low to hold.
Cryptocurrencies were hit hard over the weekend as sellers piled in to lock away some recent gains. Bitcoin pushed back below the $10,000 level triggering sellers across the board. Bitcoin is currently trading at $9776.3 down 1.21% while Ethereum is at $252.01 down 5.99% and Ripple is currently at $0.28312 down 9.96%.
The ASX200 started the session relatively flat Friday but found some buying support throughout the day as the Index pushed back up towards new all time highs. At the close the index ended up 27 points to 7130.2 with the Financials and then Utilities sectors leading the way while the Gold sector came under pressure. Rising stocks outnumbered declining ones by 598 to 588 and 324 ended unchanged.
The ASX200 is expected to open down 15 points as the US ends the week lower into the long weekend for Presidents Day Holiday.
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ECONOMIC DATA OUT TODAY (AEDT)
JPY Prelim GDP 10:50am
JPY Revised Industrial Production 3:30pm
USD Bank Holiday All Day
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SPI200 INTRADAY LEVELS TO WATCH
