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OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 23/06/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures up 34 pts to 5935
- SP500 up 20.12 pts to 3117.86
- NASDAQ up 110.35 pts to 10,056.48
- Dow Jones up 153.50 pts to 26,024.96
- FTSE100 down 47.98 pts to 6244.62
- DAX30 down 67.79 pts to 12,262.97
- GOLD futures (Aug Contract) up $11.30 to $1764.30 an ounce
- COPPER futures (Comex Sept) up $0.041 to $2.652 a pound
- OIL futures US Session (Nymex July) up $0.71 to $40.46 a barrel
- CRB Index up 1.08 pts to 139.05
- AUDUSD trading at 0.6912
- EURUSD trading at 1.1262
- GBPUSD trading at 1.2466
- USDJPY trading at 106.8900
- USD Index US Session (ICE Sept) down 0.579 to 96.998
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The US broader market edged higher from the open while the Nasdaq traded up to the all time high and is set to make new records. Traders brushed aside virus concerns and also economic data concerns on weak new housing sales to keep the party rolling. Seems that it is again risk on into shares as the safe haven USD was sold off. As the number of new coronavirus cases increase, especially in North and South America, traders will be watching government reaction and whether the increase means further lockdowns will be put in place….although the Whitehouse said that this is unlikely. This is turn may mean further stimulus which will be supportive although employment data will take another hit and the longer term affects on companies and the economy will be worse. Moodys credit rating agency warned that stimulus measures will leave advanced economies with much higher debt levels than in the GFC. Debt to GDP levels will rise to nearly double the levels of 2009 which will weigh on economies. The DOW closed up 0.59% while the broader SP500 was also up 0.65% and the Nasdaq ended up 1.11% for the session. In Europe, major Indexes moved lower as they played catchup to the US from Friday. Traders showed concern over Germany’s increased number of cases reported over the weekend. If the EU can finally agree on the stimulus package then major Indexes will be supported and head higher.
The USD Index took a hit as recent buyers were squeezed back out of the action. The safe haven nature of the dollar suggests that traders remain happy to be risk on into the share market. The talk of further infrastructure stimulus (which have failed to become reality many times in the past) has supported shares although there will be a time when the rise in virus cases outweighs the enthusiasm from stock buyers. The EURUSD gained on the back of the dollar weakness. Price is holding at a minor level around 1.1265 which, if broken, could drag in further buyers for a run higher. The GBPUSD also moved higher but remains in a longer term downtrend. Further weakness in the dollar will be supportive of the currency but a break up through 1.2550 is needed to convince bulls of a potential move back up to new highs. The AUDUSD saw further risk on as shares Indexes moved higher. Price was also supported by the fall in the USD to push the Aussie up to resistance at 0.6920. If the bulls can keep the momentum going, a break of this level will lead to a move up to the 0.7000 zone. The USDJPY held in a tight range but was generally pressured lower due to the fall in the USD. Selling into the YEN helped to cap the action on the downside and keep the action tight.
SPOT GOLD continued its move higher being supported by the fall in the USD. Price action was choppy but supported as buyers traded up to the 1765 highs before price was rejected lower into the US close. If price can hold a higher low around current levels above 1744, expect to see another push up targeting new highs. Crude Oil edged higher to end the session above the $40 level in a show of strength. Price action is brushing aside any potential demand issues as bulls stay the course and continue to push higher. It was all one way traffic for Copper as buyers ramped prices higher through Asian, European and US trade. Price ended on its highs so expect to see a further push higher today although price is stretched at current levels so some profit taking may be on the cards soon.
Cryptocurrencies had a solid session being supported by the risk on sentiment into share markets. Bitcoin is trading at $9671.5 up 3.60% while Ethereum is at $245.50 up 6.53% and Ripple is lagging at $0.18977 up 1.66%.
The ASX200 saw a big shakeout of bears on the open yesterday before the bulls stepped back in to the action to lift prices higher off the lows. In the end it was a flat session with the Index finishing up 1.9 points to 5944.5. Buyers were supported by RBA Lowes comments that the rise in the AUD was not a problem and the impact of the pandemic would not be as bad as feared. The action was supported by gains in the Gold, Metals and Mining and Materials sectors. Falling stocks outnumbered advancing ones by 737 to 509 and 339 ended unchanged.
The ASX200 is expected to open up 35/40 points as the SPI200 held up off support to end at highs for the overnight session.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD Flash Manufacturing and Services PMI 9am
EUR French Flash Manufacturing and Services PMI 5:15pm
EUR German Flash Manufacturing and Services PMI 5:30pm
EUR Flash Manufacturing and Services PMI 6pm
GBP Flash Manufacturing and Services PMI 6:30pm
GBP BOE Gov Bailey Speaks 6:45pm
USD Flash Manufacturing and Services PMI 11:45pm
USD New Home Sales 12am
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SPI200 INTRADAY LEVELS TO WATCH
