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OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 11/03/20 (as at 8:00am AEDT)
- SPI200 (Mar) overnight futures up 34 pts to 5999
- SP500 up 135.67 pts to 2882.23
- NASDAQ up 393.58 pts to 8344.25
- Dow Jones up 1167.14 pts to 25,018.16
- FTSE100 down 5.54 pts to 5960.23
- DAX30 down 149.53 pts to 10,475.49
- GOLD futures (April Contract) down $27.50 to $1648.20 an ounce
- COPPER futures (Comex May) up $0.029 to $2.539 a pound
- OIL futures US Session (Nymex Apr) up $3.31 to $34.44 a barrel
- CRB Index up 5.85 pts to 150.66
- AUDUSD trading at 0.6502
- EURUSD trading at 1.1284
- GBPUSD trading at 1.2902
- USDJPY trading at 105.5500
- USD Index US Session (ICE March) up 1.645 to 96.515
US Indexes reversed some of the previous sessions losses with a strong rally into the close to put the squeeze on the short sellers. US bond market pressure eased also as bond yields rallied and prices fell. Going into the US session, markets were in a bargain hunting mood on expectations of global stimulus measures from major central banks and Governments. The move eased some fears and calmed the nerves to some extent but many still fear that there is more to come as Italian health system is under severe pressure from the spread of the virus and the increasing number of carriers and deaths may be a true reflection of the potency of the coronavirus. The concern remains that a faster than expected spread will put serious pressure on global health systems which may prove to be unprepared. Trump announced a potential stimulus package which he will put to congress which includes a payroll tax cut and other so called ‘very major’ moves to ease the economic pain but details still remain unclear. Japan started the stimulus ball rolling with a second package of $4 billion in spending aimed at supporting small and mid-sized companies. The DOW jumped up 4.89% while the broader SP500 was up 4.94% and the Nasdaq also ended up 4.95% for the session. In Europe, major stock Indexes ended the session on the lows on a selloff into the close as traders remained cautious although the German DAX futures managed to rally around 300 points after the share market close so expect to see some catchup in Europe on the open.
The USD Index reversed some losses in a move that started from the open in the Asian session. The move up put pressure on dollar crosses although many believe that it is too early to expect that the lows are now in place. A lot of heat needed to come out of markets after the crash Monday and we have seen that move overnight. There may still be more to come but traders will need some positive news on the control of the virus if/when the positive sentiment on stimulus fades. The EURUSD as hit hard as expected as the price was well and truly extended higher. There was a big squeeze on buyers to push price lower as the Dollar opened and proceeded to rally. The GBPUSD was also belted as the dollar rallied but is potentially in a zone for buyers to start stepping back into to support the action. We expect that the USD may come under further pressure which would support the Pound. The AUDUSD reverted back to moving lower as price had no support levels to tempt buyers. If the Aussie can not get back up and through the 0.6550 zone we expect to see some further downside with the only support to come potentially from a fall in the USD. The USDJPY rallied as safe haven YEN buyers sold out of longs thanks to the BOJ stimulus announcement and added to the bullish pressure from the Dollar rally.
SPOT GOLD was hit hard to give up some gains made during the market meltdown. Safe have buyers bailed from the precious metal and went bargain hunting into the share market looking for some quick gains. Crude Oil bounced back over 11% as Russia indicated that they are open for talks with OPEC to ease the stale mate and bring some sanity back to markets. Copper also put in a handy bounce off support as share market gains gave bulls some confidence. Buyers still have some work to do as the trend is still down and Euphoric buying cold revert back to selling at any stage as economic data starts to flow.
Cryptocurrencies bounced back slightly from the previous sessions weakness. Bitcoin is currently trading at $7977.2 up 1.67% but off the sessions highs. Ethereum is trading at $202.18 up 2.26% while Ripple is at $0.21217 up 3.87%.
The ASX200 opened down over 250 points yesterday before rallying hard to make back some of the lost ground. Bargain hunters were out to sweep up some overextended shares pushing the Index up to close at 5939.6 up 179 points. The Financial sector led the charge higher followed closely by IT, Metals and Mining and Resources. Rising stocks outnumbered declining ones by 701 to 600 and 250 ended unchanged.
The ASX200 is expected to open up 35 points to hold the gains from the previous session as the US also put in a strong bounce to lead the SPI200 higher.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD RBA Deputy Gov Debelle Speaks 9am
AUD Westpac Consumer Sentiment 10:30am
GBP GDP, Manufacturing Production, Goods Trade Balance and Industrial Production 8:30pm
GBP Annual Budget Release 10:30pm
USD CPI Data 11:30pm
USD Crude Oil Inventories 1:30am
USD Federal Budget Balance 5am
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SPI200 INTRADAY LEVELS TO WATCH
