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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 16/04/20 (as at 7:15am AEST)
- SPI200 (Jun) overnight futures down 122 pts to 5340
- SP500 down 62.70 pts to 2783.36
- NASDAQ down 122.56 pts to 8393.18
- Dow Jones down 445.41 pts to 23,504.35
- FTSE100 down 193.66 pts to 5597.65
- DAX30 down 416.80 pts to 10,279.76
- GOLD futures (June Contract) down $25.90 to $1743.00 an ounce
- COPPER futures (Comex July) down $0.029 to $2.300 a pound
- OIL futures US Session (Nymex May) up $0.04 to $20.15 a barrel
- CRB Index down 2.38 pts to 123.63
- AUDUSD trading at 0.6322
- EURUSD trading at 1.0908
- GBPUSD trading at 1.2527
- USDJPY trading at 107.4400
- USD Index US Session (ICE June) up 0.720 to 99.605
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US Indexes moved lower right from the open after a rough session in Europe weighed on stock markets. Retail Sales and Industrial production data showed some of the impact of the virus spread on the economy as figures came in worse than expected. Traders will be focused on jobs and production data to come as the economy contracted at its fasted pace in decades on the global shutdown. The DOW finished down 1.86% while the broader SP500 was also down 2.20% and the Nasdaq ended down 1.44% for the session. In Europe, stock Indexes were hit by their first batch of Earnings reports that underscored the damage done from the coronavirus. Oil also moved lower to hit the energy sector and add to the already fragile sentiment and beaten down market.
The USD Index found support from buyers as price got a lift from the negative economic data as traders sought the safety of the currency. US Bond prices also rallied from the European session open and the start of the selloff into share markets. The concern now is that the damage to economies will be a lot more protracted than initially thought as the IMF (International Monetary Fund) downgraded global growth more than expected. The EURUSD was hit hard as price was quick to reverse previous gains and fall away from the highs. Price action did react off support around 1.0855 so we will be watching for a lower high to build that will move prices lower through the support level…as long as the safe haven buying into the USD continues. The GBPUSD was also hit hard as the Dollar rallied. There is still a lot of buying fuel built up to be squeezed out of the action to pressure the Pound lower. The AUDUSD was not sheltered from the selling as price fell apart. We are also seeing some pre-emptive selling into the Jobs numbers today as buyers are happy to square up positions ahead of the release. The USDJPY found some short covering as expected off the 107.000 support zone. Some safe haven YEN buying capped the rally from the USD so we expect that any further rally in the FX Pair will be hard going even if the Dollar continues higher.
SPOT GOLD moved lower off the highs made in recent sessions as buyers were happy to lock away some gains. Price is contracting back to the longer term average suggesting that the bull market is still in tact and setting for another move higher. We are watching for the 1706 zone on Spot Gold to hold and a move up through 1725 to trigger buyers into action. Crude Oil initially moved lower through 20 (in the May Futures Contract) but then found some buyers into the close to support price above the level. Price was pressured by higher than expected US oil inventory data which is adding to the concern for oversupply while demand wanes. The International Energy Agency (IEA) also forecast a 29-million-barrel per day dive in April crude demand to levels not seen in 25 years and said no output cut could fully offset the near-term decline. Copper was hit lower from the start of the European session as buyers finally locked away some gains on share market weakness. The trend up off major lows is still holding so it will be interesting to see if bulls are happy to support current levels for another run through the highs.
Cryptocurrencies again had another lackluster session which may be an overall good sign for the bulls. Prices generally are contracting off the highs and building for a run up. Bitcoin is currently trading at $6734.6 down 1.75% while Ethereum is at $157.48 down 0.97% and Ripple is at $0.18478 down 0.34%.
The ASX200 gave up early gains from the open yesterday to move lower where it remained in a narrow range until the close. The index ended down 21.4 points to 5466.7 with the Energy sector being hit down 3.05% and Resources down 1.11%. There was some tentative trading yesterday ahead of today’s Aussie jobs numbers at 11:30am. Expectations are for the unemployment rate to move to 5.4% from 5.1% with 33k job losses. Rising stocks outnumbered declining ones by 668 to 586 and 295 ended unchanged.
The ASX200 is expected to open down 120 points after the SPI200 moved lower to support. Traders may be less active into the Jobs numbers at 11:30am which is expected to trigger some action.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD Employment Change and Unemployment Rate 11:30am
EUR German Final CPI 4pm
GBP BOE Credit Conditions Survey 6:30pm
EUR Industrial Production 7pm
USD Unemployment Claims, Building Permits and Philly Fed Manufacturing Index 10:30pm
GBP MPC Member Tenreyro Speaks 11:30pm
USD FOMC Member Williams Speaks 4am
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SPI200 INTRADAY LEVELS TO WATCH
