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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 12/03/20 (as at 8:00am AEDT)
- SPI200 (Mar) overnight futures down 200 pts to 5528
- SP500 down 140.85 pts to 2741.38
- NASDAQ down 392.20 pts to 7952.05
- Dow Jones down 1464.94 pts to 23,553.22
- FTSE100 down 83.71 pts to 5876.52
- DAX30 down 36.81 pts to 10,438.68
- GOLD futures (April Contract) down $21.80 to $1638.50 an ounce
- COPPER futures (Comex May) down $0.043 to $2.478 a pound
- OIL futures US Session (Nymex Apr) down $1.35 to $33.01 a barrel
- CRB Index down 2.86 pts to 147.80
- AUDUSD trading at 0.6488
- EURUSD trading at 1.1265
- GBPUSD trading at 1.2823
- USDJPY trading at 104.4700
- USD Index US Session (ICE March) up 0.161 to 96.550
US Indexes were again under pressure overnight as sellers flooded back into the action. Fear again gripped the market as the World Health Organization finally classified the coronavirus as a ‘Pandemic’. Also weighing on investor sentiment is the fact that the SP500 has now fallen over 20% from the Feb 19th highs to push the index into Bear market territory. Some good news is that Bonds fell as yields rallied while the USD also managed to close up at highs. Traders are still awaiting news on Trumps stimulus package and will need more that just tax cuts to support markets. The DOW was slammed down 5.86% while the broader SP500 was down 4.89% and the Nasdaq also ended down 4.70% for the session. In Europe, major stock Indexes ended the session slightly lower but closed before the DOW dropped another 600 points so we expect to see some catch-up play out tonight. The Bank Of England (BOE) added stimulus measures which failed to entice buyers into the market. European markets did initially rally in the news but were quick to surrender the gains and head lower as traders were expecting a weak US open. All eyes will be on the ECB policy meeting tonight to see whether there will be an attack on interest rates for further stimulus.
The USD Index initially came under pressure through the Asian and European sessions before buyers reversed the losses to push price up to end on the intraday highs as US inflationary data remained in tact at 0.2% potentially taking some pressure off further rate cuts. The EURUSD moved lower once the USD started heading higher. There is still a lot of heat that can come out of the recent rally but a continued move lower will depend on the USD. The GBPUSD was holding support around the 1.2900 zone before US CPI data came out to push the Pound lower. The next level for support will be around the 1.2775 zone and if that can not hold, it may be a free fall lower. The AUDUSD gave up all the gains made during the Asian session to push lower into the close as trader remain concerned for global trade demand. Traders may also be factoring in further stimulus from the RBA. The USDJPY edged lower as safe haven YEN buying outweighed dollar strength.
SPOT GOLD gave up further gains as share markets were again hit lower. There is an idea that traders are closing any gains in Gold to cover margin calls that may be due to the share market meltdown. We expect that this is not the only reason gold is not getting a strong safe haven footing as investors are cautious across the board when facing hefty losses in portfolios. Crude Oil gave up some of the previous sessions gains as US inventory data showed an unexpected rise. Price was also weighed down by news that the International Energy Agency said that Oil consumption would drop in 2020. We will be watching now to see if buyers can start to support price from here or whether there will be a retest of the lows below 30 a barrel but it will depend on whether the stalemate between Russia and OPEC can be broken. Copper came under fire as the buyers disappeared and sellers took control to slam price back into long term support. Buyers will again need to step up to support price but the outlook remains grim at this stage and any thoughts of a quick recovery are out the door for now.
Cryptocurrencies were hit along with the overall markets as traders remain cautious on adding further risk to holdings. Bitcoin is trading at $7898.4 down 1.41% while Ethereum is at $190.80 down 5.92% and Ripple is at $0.20592 down 3.17%.
The ASX200 opened a little higher yesterday but was quick to give back the gains plus some more. Profit taking hit the overnight US Indexes after the close of the US session which started the move lower in major Indexes. The ASX200 ended the session down 213.7 points or 3.60% to 5725.9. All sectors ended in the red with Gold then Financials leading the charge. The Gold sector ended down 7.22% while Financials were down 5.26% to wipe off the gains from Tuesdays session. Falling stocks outnumbered advancing ones by 809 to 413 and 254 ended unchanged.
The ASX200 is expected to open down another 200 points as the major indexes were again under fire overnight pushing the SPI200 lower.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD MI Inflation Expectations 11am
EUR Industrial Production 9pm
USD PPI Data and Unemployment Claims 11:30pm
EUR Main Refinancing Rate ad Monetary Policy Statement 11:45pm
EUR ECB Press Conference 12:30am
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SPI200 INTRADAY LEVELS TO WATCH
