–
OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 29/04/20 (as at 7:15am AEST)
- SPI200 (Jun) overnight futures up 20 pts to 5325
- SP500 down 15.09 pts to 2863.39
- NASDAQ down 122.43 pts to 8607.73
- Dow Jones down 32.23 pts to 24,101.55
- FTSE100 up 111.71 pts to 5958.50
- DAX30 up 135.64 pts to 10,795.63
- GOLD futures (June Contract) up $0.60 to $1724.40 an ounce
- COPPER futures (Comex July) down $0.005 to $2.340 a pound
- OIL futures US Session (Nymex June) up $0.49 to $13.27 a barrel
- CRB Index up 0.21 pts to 108.21
- AUDUSD trading at 0.6490
- EURUSD trading at 1.0821
- GBPUSD trading at 1.2424
- USDJPY trading at 106.8700
- USD Index US Session (ICE June) down 0.044 to 100.053
–
US Indexes gave up gains from the open to drift lower for the session and end in the red. The move lower was attributed to a rotation out of performing tech stocks and into economically sensitive value stocks where prices have suffered the most during the fall from the all time highs. This may be seen as a positive as the economy is beginning to open up again although many economists are still expecting shocks lower due to exceptionally negative unemployment and GDP data. Health experts are still warning of reopening too early as models predict that the US death toll could be 74000 compared with 67000 forecast earlier. There remains a lot of conflict around the proper course of action for reopening and some states, and countries, are happy to take a wait and see approach as data from early openers becomes available. The DOW took a breather finishing down 0.13% while the broader SP500 was also down 0.52% and the Nasdaq down 1.40% for the session. In Europe, stock Indexes were higher for the session being helped by a rally in bank and financial shares. The positive sentiment continues to be driven by easing of coronavirus driven lockdowns. Traders may be more cautious coming into tonights session ahead of FOMC’s statement and interest rate announcement which may trigger some volatility into the USD and major FX pairs.
The USD Index was hit hard from the start of the European session but did manage to bounce and make back some of the losses once the US session kicked into gear. This seems to be a theme lately…weakness into the dollar prior to the US open followed by a bounce. The positive mood in European equities is the main cause as traders were risk on into European shares. If major Indexes take a nosedive, expect the dollar to charge for the highs on concern again for liquidity. The EURUSD started the European session with a sharp spike but was quick to turn lower once the USD started to rally. Bulls will need to hold price above the 1.0800 zone to start a run up to recent highs. The GBPUSD also benefited from early dollar weakness to rally up through 1.2500 before giving up all the gains into the close of the US session. Price action continues to hold higher levels so we will be interested to see if buyers can build a base for another run up. The AUDUSD also rallied on early USD weakness but unlike the Pound and Euro, price managed to hold onto the gains and consolidate around the highs. The Aussie is being supported by a better showing into commodities which we expect to continue as concern for USD shortage eases. The USDJPY was hit hard through key support around 107.000 but then bounced along with dollar strength. Price may still have further lower to go if we see price stall below 107.340 to tempt sellers to dive back in to the action.
SPOT GOLD continued to struggle up at the 1740 zone but did see some buyers step into the action and push price below the 1700 level. Price is still holding lower highs so we may see another run lower especially if major share indexes come under pressure in the near term. Crude Oil prices were choppy as sellers pushed lower through the Asian session only to see buyers fight back through European and US trade to move price back to where it started. The action may lead to a run higher as buyers see an opportunity for a quick gain ahead of the rollover in the futures next month. Copper was looking good being supported by gains into European stock Indexes right up until the US session opened which saw sellers stepping in to move price straight back down. Like everything else, price is linked to sentiment and is closely watching how and when economies will reopen for business to lift demand.
Cryptocurrencies were generally higher with Ripple having a strong session. Bitcoin is currently trading at $7722.8 up 0.02% while Ethereum is at $196.14 up 1.32% and Ripple is trading at $0.21236 up 7.93%.
The ASX200 started out okay yesterday before sellers stepped in to press price lower. At one stage the Index was down 45 points before buyers managed to stage a late rally to end the Index just below even at 5313.1 down 8.3 points. Gold stocks were the biggest drag on the index followed by the Energy sector while Consumer Discretionary ended up 1.67%. Rising stocks outnumbered declining ones by 653 to 547 and 301 ended unchanged.
The ASX200 is expected to open up 20 points after a choppy session overnight for the SPI200.
–
ECONOMIC DATA OUT TODAY (AEDT)
AUD CPI Data 11:30am
EUR German Import Prices 4pm
EUR German Prelim CPI All Day
USD Advance GDP Data 10:30pm
USD Pending Home Sales 12am
USD Crude Oil Inventories 12:30am
USD FOMC Statement and Fed Funds Rate 4am
USD FOMC Press Conference 4:30am
–
SPI200 INTRADAY LEVELS TO WATCH
