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OVERNIGHT MARKET SNAPSHOT FOR MONDAY 30/03/20
- SPI200 (Jun) overnight futures up 6 pts to 4834
- SP500 down 88.60 pts to 2541.47
- NASDAQ down 295.16 pts to 7502.38
- Dow Jones down 915.39 pts to 21,636.78
- FTSE100 down 305.40 pts to 5510.33
- DAX30 down 368.44 pts to 9632.52
- GOLD futures (June Contract) down $6.20 to $1654.10 an ounce
- COPPER futures (Comex May) down $0.010 to $2.168 a pound
- OIL futures US Session (Nymex May) down $1.09 to $21.51 a barrel
- CRB Index down 2.46 pts to 123.88
- AUDUSD trading at 0.6168
- EURUSD trading at 1.1142
- GBPUSD trading at 1.2460
- USDJPY trading at 107.9400
- USD Index US Session (ICE June) down 1.031 to 98.422
US Indexes gave up some of the gains from the previous three day run up as traders were concerned into the weekend after the last few Mondays selloffs. Major Indexes remained on track for their worst monthly and quarterly performance since 2008. The US is now the hot spot for the virus as cases continue to soar. The Stimulus is having the desired affect on the credit markets but not on shares as traders are still guessing at the damage to earnings. Fresh divide flared up over the weekend in Washington over the next steps for Congress to deal with the virus and on the need for further economic stimulus. Traders will be focusing on the spread of the virus this week and how much of the US will be on lock-down after talks over the weekend of shutting down New York. The DOW finished down 4.06% while the broader SP500 was also down 3.37% and the Nasdaq ended down 3.79% for the session. In Europe, stock Indexes were hit a little harder as traders went risk off also on concerns that negative news will flare up over the weekend and trigger a selloff today. Major Indexes were also pressured lower after EU lawmakers failed to agree on a coronavirus rescue package. Traders now see that the recovery will be a lot slower than consensus and it will be further slowed down by the high level of unemployment and lack of capital expenditure going forward.
The USD Index continued to push lower and was widely seen as a sign that central bankers have been successful in easing stress in the money markets and relieving the shortage of Dollars. There will certainly be a bounce back in the Dollar as market volatility persists and the virus remains very much a threat to companies and economies. The EURUSD trading in lock step still with the USD as buyers continued to push price higher. The GBPUSD also continued the charge higher once the US opened for trading and the USD sank. The AUDUSD also found buyers happy to fight back from the recent selloff as price traded up to the 0.6200 area. If price can hold above the 0.6020 area then expect to see further upside. The USDJPY surged lower under the pressure from a weak dollar. Price may easily extend down to the 105.000 zone if the dollar continues to fall.
SPOT GOLD was choppy as buyers remain content to hold above 1600 as dollar weakness supports buyers. Price was stuck in a narrow range but if it can hold above the 1612 level then we may see an attack on the highs in the near term. If it starts to push below 1613 then expect to see a break of 1600 and a squeeze on recent buyers. Crude Oil fell apart during the European session but then managed to find some support at recent lows around the 21.00 area. Bulls will need to make a move to support price although concerns remain on longer term weak demand globally and a lack of support from OPEC and Saudi Arabia through traditional production cuts. Copper struggled and bulls could not push price higher as 2.2000 held. If price continues to come under pressure and breaks below 2.1500 then a retest of the lows below 2.000 is on the cards and potentially a move lower.
Cryptocurrencies were hit over the weekend with Bitcoin trading back below the 6000 level and dragging other cryptos lower with it. Bitcoin is currently trading at $5925.7 down 5.53% while Ethereum is at $125.55 down 4.19% and Ripple is at $0.16268 down 8.83%.
The ASX200 started the session in the green on Friday but it was not long until sellers piled in to push the index into negative territory as recent buyers locked away gains into the weekend. The selling did not let up all day and the ASX200 ended down 270.9 points or 5.3% to 4842.4. All sectors were lower with Healthcare stocks getting hit the hardest while Financials and Energy stocks followed close behind. Falling stocks outnumbered advancing ones by 740 to 499 and 250 ended unchanged.
The ASX200 is expected to open flat as the SPI200 held above the days lows during the European and US sessions. We expect to see further pressure as the coronavirus concerns continue to pressure the global economy.
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ECONOMIC DATA OUT TODAY (AEDT)
EUR German Prelim CPI All Day
GBP Mortgage Approvals and Net Lending to Individuals 7:30pm
USD Pending Home Sales 1am
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SPI200 INTRADAY LEVELS TO WATCH
