–
OVERNIGHT MARKET SNAPSHOT FOR MONDAY 24/02/20
- SPI200 (Mar) overnight futures down 47 pts to 7039
- SP500 down 35.48 pts to 3337.75
- NASDAQ down 174.37 pts to 9576.59
- Dow Jones down 227.57 pts to 28,992.41
- FTSE100 down 32.72 pts to 7403.92
- DAX30 down 84.67 pts to 13,579.33
- GOLD futures (April Contract) up $28.30 to $1648.80 an ounce
- COPPER futures (Comex May) up $0.014 to $2.602 a pound
- OIL futures US Session (Nymex Mar) down $0.50 to $53.38 a barrel
- CRB Index down 0.08 pts to 174.65
- AUDUSD trading at 0.6627
- EURUSD trading at 1.0847
- GBPUSD trading at 1.2964
- USDJPY trading at 111.6100
- USD Index US Session (ICE March) down 0.514 to 99.262
US Indexes were lower to end the week as traders remain concerned over the impact of the coronavirus to the global economy. China reported an uptick to the number of cases while South Korea reported 100 new cases and more than 80 people tested positive for the virus in Japan. Some negative manufacturing and services data out prior to the US open, added to the negative sentiment. The data saw safe havens rally as traders expect to see further negative data releases and virus impacts impact supply chains and company activity start to flow through. The pressure increased over the weekend with further cases in South Korea, Italy and Iran being reported. The DOW closed down another 0.78% while the broader SP500 was down 1.05% and the Nasdaq ended down 1.79% for the session. In Europe, major Indexes came under selling pressure as traders start to lock away some gains from the recent rally. Concern is now that we are starting to see some real data on the virus from outside of China as the true impact from within China is being suppressed.
On Sunday, President Xi Jinping was quoted as saying China will step up policy adjustments to help cushion the blow to the economy from a coronavirus outbreak that authorities are still trying to control. The news suggests that the problem is bigger than expected and the increasing numbers of cases outside of China will be watched closely. The IMF chief said that the virus will have a negative impact on the global economy even if it is rapidly contained, and it would be prudent to prepare for more significant consequences.
The USD Index took a turn for the worse as buyers locked away some gains on the negative data release. The USD spiked lower on the open of the US session which was a different reaction from the buying seem the past opens. The EURUSD managed to push up off support around 1.0775 as sellers locked away some gains on the spike lower in the dollar. The move may be proved short lived but there still remains a lot of sellers stacked up that could provide fuel for a stronger move up. The GBPUSD moved higher off key support in a move that started prior to the weakness in the dollar. The AUDUSD traded in similar fashion to the Euro as buyers stepped in as the USD fell. The Aussie has been under pressure for a while on concerns to the local economy from a China shutdown. We expect this theme to continue as the move up was more linked to short covering than a change to the virus outlook. The USDJPY found some pressure to push lower as the USD fell although a lot of the weakness was soaked up by YEN sellers as Japans economy flirts with recession. Safe haven YEN buying remains on the sidelines which may support the YEN going forward.
SPOT GOLD continued to find safe haven buying and the move was ramped up as the USD fell. Aussie gold continues to do well as the Aussie remains under pressure. Crude Oil backed off through the Asian and European sessions but then found some support on the weakness into the USD. The move lower in Crude Oil saw weakness flow through into energy stocks although we see the move as corrective off the major lows so expect to see some further buying support step in. Copper was buoyed by the weakness in the USD as the longer term price action continues to look constructive for a move off major support. Buyers still have some work to do and if virus fears persist which will pressure the commodities demand.
Cryptocurrencies edge higher as Bitcoin is currently trading higher but remains under the 10000 level. Bitcoin is at $9865.9 up 1.88% while Ethereum is trading at $270.57 up 3.23% and Ripple is at $0.28017 up 1.79%.
The ASX200 opened weaker on Friday and then remained under pressure all day as Asia moved lower after WHO (World Health Organization) Chief warned of a global coronavirus outbreak. The Index ended down 23.5 points to 7139 and is expected to see further pressure today. The Consumer Discretionary and Energy Sectors led the move lower while Financials were in the green along with the Gold sector…which was relatively contained considering the virus concerns. Falling stocks outnumbered advancing ones by 621 to 534 and 339 ended unchanged.
The ASX200 is expected to open down 45 points after the European and US markets closed on a negative note into the weekend.
–
ECONOMIC DATA OUT TODAY (AEDT)
NZD Retail Sales Data 8:45am
JPY Bank Holiday All Day
EUR German Ifo Business Climate 8pm
GBP MPC Member Haldane Speaks 5:30am
–
SPI200 INTRADAY LEVELS TO WATCH
