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OVERNIGHT MARKET SNAPSHOT FOR FRIDAY 29/05/20 (as at 7:15am AEST)
- SPI200 (Jun) overnight futures down 20 pts to 5836
- SP500 down 6.40 pts to 3029.73
- NASDAQ down 43.37 pts to 9368.99
- Dow Jones down 147.63 pts to 25,400.64
- FTSE100 up 74.54 pts to 6218.79
- DAX30 up 123.44 pts to 11,781.13
- GOLD futures (Aug Contract) up $4.60 to $1731.40 an ounce
- COPPER futures (Comex July) up $0.026 to $2.408 a pound
- OIL futures US Session (Nymex July) up $0.85 to $33.66 a barrel
- CRB Index up 0.60 pts to 129.76
- AUDUSD trading at 0.6637
- EURUSD trading at 1.1073
- GBPUSD trading at 1.2319
- USDJPY trading at 107.6300
- USD Index US Session (ICE June) down 0.588 to 98.470
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US Indexes were hit hard into the close in a move that sent the DOW down over 300 points. Buyers seemed happy to lock in some gains after the previous few days rally. The Nasdaq came under pressure late to give up all the gains from earlier in the session plus more after Trump said he would sign an executive order related to social media companies which removes a liability shield that they currently work behind. Also weighing on the action was US/China tensions which triggered the selloff as Trump said he would hold a press conference later tonight. The jobs data out showed Americans seeking jobless benefits fell for an eighth straight week although the number remained very high and is still going up. The DOW ended down 0.58% while the broader SP500 was down 0.21% and the Nasdaq ended up 0.46% for the session. In Europe, major indexes were higher after another ramp up in the Asian session for US and European indexes. We expect that they will open lower tonight as they factor in the late selloff into the US. Investors continue to go risk on and brush off negative news to focus on a potential bounce in economic growth later in the year thanks to massive stimulus measures.
The USD Index continued to come under pressure moving into support around 98.300. The rally in the Euro also pressured the currency pair as shares markets show to need for a safe haven at this stage. The EURUSD continued to benefit on the back of stimulus news which will support hard hit economies in the region. Price charged higher off the 1.1000 zone and is extended so we expect to see some profit taking. The GBPUSD bounced back up of the lows as the Dollar fell over. Buyers may be setting for another run up if they can hold a higher low above 1.2300. The AUDUSD initially found support from the weaker USD although came under pressure as US equities sold off into the close. If price can not hold above 0.6590, then we expect to see a deeper correction lower and shares sell off. The USDJPY continued to be held in a range between the 107.330 zone and 107.950 highs. We may see further downside pressure as lower highs hold.
SPOT GOLD rallied through European trade but then gave up a lot of the gains into the close of the US as price remains entrenched in a descending channel. Watch now for a lower high to hold around 1720 that will put the squeeze on recent buyers. Crude Oil found support from news that demand may be edging higher after a flurry of tentative bookings to export US crude oil from the Gulf Coast. Vessels have apparently been booked for next month to ship crude to Asia with other exporters looking to do the same. Price pushed up off support around 31.15 through the European and US sessions and is building for a move up through 34.50. OPEC are still looking to extend record output cuts until the end of 2020 although Russia remain against the idea. Copper did manage to move up out of oversold conditions to find resistance around 2.4215. Watching now to see if price can hold a key higher low to drag in further buyers for another run up.
Cryptocurrency bulls continued the push higher making back some lost ground from the previous run lower. Bitcoin is currently trading at $9444.1 up 2.96% while Ethereum is at $214.75 up 4.35% and Ripple is lagging the rest and is at $0.19820 up 0.35%.
The ASX200 came out of the gates with a bang yesterday and was up around 140 points early before price suddenly turned as buyers locked away some gains around midday. The Index ended up 76.1 points to 5851.1 at the close with all sectors apart from energy ending in the green as Financials again led the way up 3.09%. Rising stocks outnumbered declining ones by 681 to 529 and 354 ended unchanged.
The ASX200 is expected to open down 25 points after the SPI200 moved lower being dragged down by a weak close to the US session.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD Private Sector Credit 11:30am
JPY Consumer Confidence 3pm
EUR German Import Prices and Retail Sales 4pm
EUR CPI Flash Estimate Data 7pm
CAD GDP 10:30pm
USD Personal Spending, Wholesale Inventories and Goods Trade Balance 10:30pm
USD Consumer Sentiment 12am
USD Fed Chair Powell Speaks 1am
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SPI200 INTRADAY LEVELS TO WATCH
