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OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 28/04/20 (as at 7:15am AEST)
- SPI200 (Jun) overnight futures up 5 pts to 5313
- SP500 up 41.74 pts to 2878.48
- NASDAQ up 95.64 pts to 8730.16
- Dow Jones up 358.51 pts to 24,133.78
- FTSE100 up 94.56 pts to 5846.79
- DAX30 up 323.90 pts to 10,659.99
- GOLD futures (June Contract) down $11.40 to $1724.20 an ounce
- COPPER futures (Comex July) up $0.011 to $2.348 a pound
- OIL futures US Session (Nymex June) down $4.01 to $12.93 a barrel
- CRB Index down 4.76 pts to 108.00
- AUDUSD trading at 0.6463
- EURUSD trading at 1.0828
- GBPUSD trading at 1.2427
- USDJPY trading at 107.2600
- USD Index US Session (ICE June) down 0.329 to 100.105
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US Indexes put in another strong showing to end the session higher as plans to reopen local economies boost risk sentiment into the share market. States in the US such as Georgia, have reopened some nonessential businesses such as restaurants despite warnings of health experts. Many states and countries globally where the virus outbreak has been contained or taken a relatively light toll, are keen to get back to business so are starting to ease restrictions. They will be the benchmark for others that are keen to see how the virus spread is effected. Many believe that the spread will again spike in those areas as social distancing will be near impossible to enforce. The Australian government is keen to send students back to schools to enable them to get workers back to business also but many disagree with the reasoning with some states leaving the restrictions in place against Scomo’s better judgement. The DOW continued higher finishing up 1.51% while the broader SP500 was also up 1.47% and the Nasdaq up 1.11% for the session. In Europe, stock Indexes were lifted by stimulus measures with airline stocks rallying on hopes for funding support. Buyers were also in a risk on mood on signs that many countries are starting to ease restrictions. There are also many that signaled they would not open anytime soon as the social distancing is the reason for the containment of the virus and opening will only see infected numbers increase.
The USD Index broke down lower at the start of the Asian session as risk sentiment continued to move into global share markets. Safe haven buyers closed trades to pressure the USD lower along with bond prices as yields lifted. The EURUSD moved up during the Asian session as the dollar fell but then gave up some of the gains during the US session. Price looks ready to continue higher if we see a move up through 1.0835. The GBPUSD moved up as expected through the resistance zone at 1.2394 and is currently consolidating above the level. If price continues to hold above 1.2394 then expect to see higher levels. The AUDUSD gained as price continues to hold higher levels. The move up was triggered by news that Queensland and WA are going to ease social distancing rules this week to start the process of re-opening the states. Other states will be watching closely to see how the virus numbers react. The USDJPY moved lower as the USD came under pressure. Price spiked down into key support around 107.000 and quickly rejected the zone so we will be watching to see if a higher low can hold to squeeze out recent buyers or whether sellers continue the march lower.
SPOT GOLD edged lower as US share markets continued to go risk on. Key resistance around 1740 recently held so we expect the grind lower to continue for now as long as the buying into shares continues. If the 1700 area can not hold then price will head down to 1665/70. Crude Oil prices dropped 23% but did not trigger any concern into the equity market. Worries remain around another move to negative territory until demand lifts. Copper saw some profit taking as expected with recent buyers happy to lock away some gains. Price spiked lower but was quickly rejected as buyers stepped back in. Watch for a move up through 2.3540 to drag in more buyers for continuation up.
Cryptocurrencies were mixed but generally managed to hold on to the recent gains. Bitcoin continues to edge higher and is trading at $7710.3 up 1.11% while Ethereum is at $194.11 down 1.32% and Ripple is at $0.19522 down 0.39%.
The ASX200 started the session yesterday with a push lower just to clean out some buyers before the bulls started the run higher. Price managed to hold higher levels all day in a show of strength before closing up 78.8 points to 5321.4. The financial sector was the only area that ended lower while the IT and Consumer Discretionary sectors led the way up. Rising stocks outnumbered declining ones by 799 to 382 and 324 ended unchanged.
The ASX200 is expected to open up 5/10 points after another strong session in the US.
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ECONOMIC DATA OUT TODAY (AEDT)
JPY Unemployment Rate 9:30am
EUR Spanish Unemployment Rate 5pm
USD Goods Trade Balance 10:30pm
USD Prelim Wholesale Inventories 10:30pm
USD Consumer Confidence 12am
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SPI200 INTRADAY LEVELS TO WATCH
