–
OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 17/06/20 (as at 7:15am AEST)
- SPI200 (Jun) overnight futures up 29 pts to 5974
- SP500 up 58.15 pts to 3124.74
- NASDAQ up 169.85 pts to 9895.87
- Dow Jones up 526.82 pts to 26,289.98
- FTSE100 up 178.09 pts to 6242.79
- DAX30 up 404.31 pts to 12,315.66
- GOLD futures (Aug Contract) up $7.70 to $1734.90 an ounce
- COPPER futures (Comex Sept) down $0.002 to $2.565 a pound
- OIL futures US Session (Nymex July) up $0.81 to $37.93 a barrel
- CRB Index up 1.49 pts to 136.27
- AUDUSD trading at 0.6885
- EURUSD trading at 1.1264
- GBPUSD trading at 1.2571
- USDJPY trading at 107.3200
- USD Index US Session (ICE Sept) up 0.318 to 96.968
–
The US had another bumper session on a series of positive news releases as the bulls kept their fingers on the buy button to ramp prices higher. Buyers found support early from better than expected core retail sales data that came out up 12.4% while analysts expected a gain of 5.5%. The action was then quick to spike lower as the DOW wiped off 800 pts on Fed Chair Powells testimony in which he reiterated that it is still a long road ahead to recovery. He mentioned that many people have been left unemployed due to the shutdowns and that will be a deep hole to fill before the economy is back on track. The move on the DOW seemed more like buyers locking in some gains from the recent push up off the lows but the action does show the nervousness up at current levels. Bulls were also supported by fresh news on a coronavirus vaccine which many say is a major breakthrough. The DOW closed up 2.04% while the broader SP500 was up 1.90% and the Nasdaq ended up 1.75% for the session. In Europe, major Indexes moved higher on the back of a strong session in Asia and as hopes for a quick recovery continue to boost risk appetite.
The USD Index bounced back after the retail sales figures and held onto the gains into the close. The bid up into the dollar may be a short squeeze or a safe haven bid as share indexes continue to get extended. Bond prices edged lower as yields grinded higher. The EURUSD was hit hard as the USD rallied and price retested support around 1.1240. If the resurgence in demand for the dollar continues then expect to see the Euro push down through support. The GBPUSD rallied early on the back of better than expected employment data although also found sellers to reverse the fortunes from the previous session once the dollar rallied. Momentum is down so we expect further pressure in the near term. The AUDUSD again came under pressure and looks weak although should continue to find buyers if the risk on sentiment continues into share markets. Watching the Aussie as a ‘heads up’ for share market action as bulls do not look as committed as previously up at current highs. The USDJPY continued to find chop as buyers and sellers fight it out. At this stage price is struggling to hold onto gains even as the USD rallied meaning that there is still a safe haven bud into the YEN.
SPOT GOLD was looking good early on in the session but then started to look heavy as the dollar gained strength. Price may be potentially holding a key lower level which would indicate lower prices to come and line up with further USD strength. Crude Oil continued to find a bid but the action was choppy as price was knocked down from highs on Powells weaker for longer speech. Copper also took a hit up at resistance and is showing further weakness. Many markets are showing very tentative signs up at highs which does not bode well for share market bulls. We may see a serious bout of profit taking if prices continue to struggle….a case of buy the rumour and sell the fact maybe.
Cryptocurrencies were relatively unchanged and held in a tight range. Bitcoin is currently trading at $9496.2 up 0.20% while Ethereum is at $234.32 up 1.10% and Ripple is at $0.19139 down 0.78%.
The ASX200 rallied hard yesterday after Trump announced his $1 Trillion infrastructure proposal to add to the bullish sentiment already supporting indexes. The ASX ended the day up 222.5 points or 3.89% to 5942.3 as bulls went on a rampage. All sectors ended in the green with Energy (+5.79%), IT (+5.72%) and Consumer Discretionary (+5.09%) outperforming the market. Rising stocks outnumbered declining ones by 975 to 278 and 339 ended unchanged.
The ASX200 is expected to open up 30 points and have another good session on the back of further strength in the US markets.
–
ECONOMIC DATA OUT TODAY (AEDT)
AUD MI Leading Index 10:30am
GBP CPI and PPI Data 4pm
EUR Final CPI Data 7pm
CAD CPI Data 10:30pm
USD Building Permits and Housing Starts 10:30pm
USD Crude Oil Inventories 12:30am
USD Fed Chair Powell Testifies 2am
–
SPI200 INTRADAY LEVELS TO WATCH
