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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 18/06/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures down 36 pts to 5926
- SP500 down 11.25 pts to 3113.49
- NASDAQ up 14.66 pts to 9910.53
- Dow Jones down 170.37 pts to 26,119.61
- FTSE100 up 10.46 pts to 6253.25
- DAX30 up 66.48 pts to 12,382.14
- GOLD futures (Aug Contract) down $1.10 to $1735.40 an ounce
- COPPER futures (Comex Sept) up $0.025 to $2.590 a pound
- OIL futures US Session (Nymex July) down $0.68 to $37.70 a barrel
- CRB Index up 0.11 pts to 136.38
- AUDUSD trading at 0.6881
- EURUSD trading at 1.1245
- GBPUSD trading at 1.2553
- USDJPY trading at 106.9700
- USD Index US Session (ICE Sept) up 0.120 to 97.053
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The US took a breather from the recent run up as bulls attempt to consolidate the recent gains. The news has turned against buyers as headlines tout a spike in new covid-19 numbers and the prospect of a new round of lockdowns. The more the buyers see news outlets push the headlines, we may see some fear edge into the action to trigger some profit taking. Fed Chair Powell said that the economy is still a concern and that government will need to do its part to support the unemployed and not take away the relief package too quickly as many will not get back to work in the near term. He mentioned that the Fed expects interest rates will need to be around zero for a lot longer and the fed will continue to suppress long dated bonds to help keep down longer term borrowing costs. The DOW closed down 0.65% while the broader SP500 was down 0.36% and the Nasdaq ended up 0.15% for the session. In Europe, major Indexes edged higher as bulls followed on from strength into the Asian session. Expectations for further stimulus from the US helped to support the bulls which offset fears of a new outbreak in China….for now.
The USD Index rallied through the Asian session but then gave up some of the gains as price drifted lower into the US close. In the near term, the dollar is expected to continue to gain as price holds minor higher levels and the buying may accelerate if share markets take a turn for the worse. The EURUSD continues to be pressured lower on dollar strength. There will be more buyers that start to come under pressure on a push below 1.1200 and they will be happy to lock in gains from the recent run up if the US dollar pressure continues. The GBPUSD saw a choppy session ahead of key interest rate news tonight. Prices are being capped and rallies sold into to pressure price lower although buyers are still soaking up the pressure for now into major a swing low around 1.2470. The AUDUSD is being capped up at 0.6920 as sellers protect the level. The weakness into share markets saw a risk off tone into the Aussie during the US session. If price starts to break down below 0.6865, then we expect to see some recent buyers squeezed out and prices push down to test the 0.6800 level. The USDJPY moved lower into the close as price was pressured by a pullback in the USD and also YEN buying. Price is down on support so we are watching for a reaction higher from buyers to put the squeeze on sellers.
SPOT GOLD found some pressure to spike lower during the Asian session as the USD rallied although buyers fought back in the US session to make back the losses. Price looks uncertain for now and is capped at 1732. Watching the action into the USD for direction on Gold but for now, buyers are looking concerned. Crude Oil continues to find sellers into rallies to cap any move up into new highs. Buyers are still holding minor higher levels but the swings are getting narrower as bulls and bears come to a point of agreement. This of course will not last long and we expect price will resolve itself higher as long as it holds above 37.00. Copper managed to move back up to reject the 2.5375 level in a good sign from the bulls. Price is still holding below 2.6250 so we are watching to see if bulls can hold a major higher low around 2.5750.
Cryptocurrencies edged lower overnight as the share market came under selling pressure into the close. Bitcoin is currently trading at $9395.9 down 1.01% while Ethereum is at $231.75 down 0.86% and Ripple gave up early gains and is now trading at $0.19219 up 0.46%.
The ASX200 was range bound yesterday for most of the session only seeing a kick higher in afternoon trade into the close. The index ended the session up 49.5 points to 5991.8. Sectors were mixed but the index was lifted by A-Reits, IT and Consumer Staples. Rising stocks outnumbered declining ones by 676 to 491 and 399 ended unchanged.
The ASX200 is expected to open down 25/30 points as the SPI200 came under some pressure overnight. The SPI200 will rollover from the June contract to September contract today so we have a delayed open on the ASX.
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ECONOMIC DATA OUT TODAY (AEDT)
NZD GDP 8:45am
AUD Employment Change and Unemployment Rate 11:30am
CHF SNB Monetary Policy Assessment and Policy Rate 5:30am
EUR ECB Economic Bulletin 6pm
GBP Asset Purchase Facility, Official Bank Rate and Monetary Policy Summary 9pm
CAD Non-farm Employment Change 10:30pm
USD Philly Fed Manufacturing Index and Unemployment Claims 10:30pm
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SPI200 INTRADAY LEVELS TO WATCH
