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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 26/03/20 (as at 7:15am AEDT)
- SPI200 (Jun) overnight futures up 104 pts to 5149
- SP500 up 28.23 pts to 2475.56
- NASDAQ down 33.56 pts to 7384.30
- Dow Jones up 495.64 pts to 21,200.55
- FTSE100 up 242.19 pts to 5688.20
- DAX30 up 173.69 pts to 9874.26
- GOLD futures (June Contract) down $24.90 to $1638.40 an ounce
- COPPER futures (Comex May) up $0.028 to $2.208 a pound
- OIL futures US Session (Nymex May) up $0.32 to $24.33 a barrel
- CRB Index up 1.44 pts to 129.60
- AUDUSD trading at 0.5959
- EURUSD trading at 1.0888
- GBPUSD trading at 1.1909
- USDJPY trading at 111.2300
- USD Index US Session (ICE June) down 1.344 to 100.903
US Indexes were on track for another big day before a late session fade saw some of the gains given back to the bears. Traders were bullish from the open as the DOW rallied up through 22000 before a spate of profit taking into the close. Traders will be looking ahead to the unemployment data out tonight for the first sign of what the damage to the US job markets may be. US senators will vote on a $2 trillion bipartisan package soon to alleviate the impact from the virus on the economy and community. The bill was already agreed upon in principle yesterday so we expect the market to be supported prior to any release. The DOW finished up 2.39% while the broader SP500 was also up 1.15% while the Nasdaq ended down 0.45% for the session. In Europe, stock Indexes pushed higher for a second straight session although finished off the high as concerns persist on the spread of the virus. Traders will be expecting corporate earnings to be punished so are reluctant to get to heavy into the market.
The USD Index initially rallied through the European session and into the start of the US session before sellers started to step back into the action and push price lower into the close. It seems that the market is happy with the new stimulus package and expects the rush to the dollar to now be contained and orderly therefore support the credit and swap markets. The EURUSD continued to make its way higher as more sellers were squeezed out of the currency. We expect to see a good rally as the new stimulus is approved by US senate and the Dollar comes under further pressure. The GBPUSD saw a volatile session although price cleaned out the resistance around 1.1890 and then held a minor higher low which suggests more pressure to the upside is to come. The AUDUSD held up well with a push back up through the 0.6000 zone. If the Dollar continues to come under pressure on further stimulus measures then expect the Aussie to rally from here to hold above the 0.5930 area. The USDJPY continued to hold in range bound trading action being capped around the 111.50/600 zone even as the USD falls.
SPOT GOLD pulled back from the highs as traders were happy to lock away some gains after a near $150 rally. Price still looks supportive of continuation higher although we expect that bulls will need to build a base first. Crude Oil traded in a narrow range between support around $23.00 and resistance up at $25.00 a barrel. US inventories came in positive although less than expected which curbed the bulls enthusiasm. Copper continues to look positive as price holds minor higher levels although buyers seem to be running out of steam and may need to see a retest towards the lows before a stronger rally can stick.
Cryptocurrencies gave up some of the recent gains in a minor pullback as traders continue to be concerned for the current trading environment. Bitcoin is trading at $6607.2 down 1.11% while Ethereum is at $135.32 down 2.88% and Ripple is at $0.15985 down 1.41%.
The ASX200 backed up Tuesdays rally with another solid session yesterday as the Index spiked 100 points in the match on news that the US finally reached a deal on the coronavirus package. In the end the index ended up 262.4 points to 4998.1 in a good day for the bulls. All sectors ended in the green except Heathcare which was down 0.24%. Leading the charge was Financials then came Metals and Mining and Resources. Rising stocks outnumbered declining ones by 915 to 291 and 228 ended unchanged.
The ASX200 is expected to open up around 100 points as the SPI200 continues to move higher overnight along with another good night in the US.
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ECONOMIC DATA OUT TODAY (AEDT)
EUR German Consumer Climate 6pm
GBP Retail Sales 6pm
EUR ECB Economic Bulletin 8pm
GBP Official Bank Rate and Monetary Policy Summary 11pm
GBP Asset Purchase Facility 11pm
USD Unemployment Claims, GDP Data and Goods Trade Balance 11:30pm
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SPI200 INTRADAY LEVELS TO WATCH
