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OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 25/03/20 (as at 7:15am AEDT)
- SPI200 (Jun) overnight futures up 278 pts to 4992
- SP500 up 209.93 pts to 2447.33
- NASDAQ up 557.18 pts to 7417.86
- Dow Jones up 2112.98 pts to 20,704.91
- FTSE100 up 452.12 pts to 5446.01
- DAX30 up 959.42 pts to 9700.57
- GOLD futures (June Contract) up $91.10 to $1663.80 an ounce
- COPPER futures (Comex May) up $0.100 to $2.200 a pound
- OIL futures US Session (Nymex May) up $0.86 to $24.22 a barrel
- CRB Index up 3.44 pts to 128.15
- AUDUSD trading at 0.5950
- EURUSD trading at 1.0798
- GBPUSD trading at 1.1775
- USDJPY trading at 111.2500
- USD Index US Session (ICE June) down 1.385 to 101.855
US Indexes had a massive night as bulls came out of the woodwork and jumped into the action even as the US is touted as being the next epicenter for the coronavirus. The rally in the DOW was its best day since 1933 being lifted by optimism for a major stimulus package after Senior Democrats and Republicans said they were close to a deal on a $2 trillion bill aimed at providing financial aid to Americans out of work and to support distressed industries. Traders see the move as a big positive but are still watching closely for a peak in the virus spread. Once traders see a peak, with all the recent stimulus, the bulls may really come out and vacuum up all the under priced shares to support the Indexes. Traders were also happy with Trump comments after he said that he was considering how to restart parts of business life when a 15-day shutdown ends next week although many States rejected the idea. The DOW ended up 11.36% while the broader SP500 was also up 9.38% and the Nasdaq ended up 8.12% for the session. In Europe, stock Indexes were also up strong after a fresh wave of stimulus triggered the bargain hunters into action. Growing evidence of the economic damage that Global economies are facing may still cap the action until expectations increase that the virus spread is coming under control.
The USD Index moved lower as the Federal Reserves efforts to shield the economy have slowed the scramble for US dollars. Added to theat traders reacted to the potential for further stimulus from the government and eased up on dollar buying. Measures of dollar demand signaled that many businesses and banks feel that they have enough for now. Click here for further dollar related news. The EURUSD managed to push higher during the Asian and European sessions only to give up some of the gains during US trade as intraday buyers were happy to lock away some gains. The GBPUSD had a good day as buyers were in charge all of the session to close price on the highs. Major support has held around 1.1445 and expect to see some resistance up at 1.1890. The AUDUSD also did well thanks to the dollar weakness and as recent sellers were squeezed out of the action. Watching now to see if the 0.5980/0.6000 zone provides resistance and triggers some buyers to close and pressure price. The USDJPY ended the session up towards highs although price is holding in a range from 110.000 to 111.500.
SPOT GOLD had another big night to push up through the 1600 level currently hovering around 1622. Price is well and truly extended although bulls are out and may be looking up to previous highs around 1680. Crude Oil lagged considering the action in other markets as buyers remain cautious. Price is coming to a point of agreement between the buyers and sellers so a move up through 25.00 should see a strong push higher come on the cards while a move below 23 opens up another retest of the recent major lows. Copper had a better session as buyers edged into the market. Price pushed up to recent highs around 2.2325 although reacted lower as buyers were quick to lock away some gains.
Cryptocurrencies had a good night to follow in the footsteps of the share markets as traders were happy to be risk on. Bitcoin is currently trading at $6723.4 up 6.70% while Ethereum is at $139.42 up 6.56% and Ripple is lagging a little trading at $0.16256 up 2.87%.
The ASX200 gave some comfort to the bulls yesterday as the Index started and also managed to end in the green. The ASX200 ended up 189.7 points to 4735.7 with 100 points done in the dying minutes of trade with an uncharacteristic rally (well maybe not lately). All sectors were in the green with Gold ending up 10.88% and that was followed by Energy which was up 7.63% then IT which closed up 6.64%. Rising stocks outnumbered declining ones by 799 to 417 and 251 ended unchanged.
The ASX200 is expected to open up over 250 points after a strong session in overnight markets dragged the SPI200 higher.
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ECONOMIC DATA OUT TODAY (AEDT)
NZD Trade Balance 8:45am
EUR German Final Ifo Business Climate 8pm
GBP CPI and PPI Data 8:30pm
USD Durable Goods Orders Data 11:30pm
USD Crude Oil Inventories 1:30am
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SPI200 INTRADAY LEVELS TO WATCH
