MARKET SNAPSHOT (7:15am AEST)-
- SPI200 overnight futures up 28 pts to 6195
- SP500 up 23.39 pts to 2736.61
- NASDAQ up 83.75 pts to 7586.43
- FTSE100 up 30.13 pts to 7603.22
- DAX30 up 146.68 pts to 12464.29
- GOLD futures up $5.30 to $1258.80 an ounce
- COPPER futures down $8.25 to $283.45 a pound
- OIL futures down $1.02 to $73.12 a barrel
- CRB Index down 1.27 pts to 196.21
- AUDUSD trading at 0.7389
- EURUSD trading at 1.1691
- GBPUSD trading at 1.3220
- USDJPY trading at 110.6800
The US come back from a day off to put in a strong session and close higher. The DOW was up 181.92 points or 0.75% while the SP500 was up 0.86% and the Nasdaq up 1.12%. Traders were more optimistic on US and Europe trade relations after reports that the US offered to suspend tariff threats on EU made cars if the EU lifts duties on US cars. Minutes from the US Fed Reserve showed that central bankers were concerned that a trade war could push the economy off its upward path. In Europe shares were higher over potential tariff relief for autos although trading remained cautious over the US deadline for China.
Asian shares continued to slide on trade war concerns with Chinese shares deep in bear territory. US tariffs of $35 Billion are expected to take affect on China tonight as China promised to retaliate but said that they would not ‘fire the first shot’ in a trade war.
Cryptocurrencies gave up some of the recent gains with Bitcoin trading lower currently at $6501.6 down 3.04%. Ethereum is tading at $464.13 down 2.24% and Ripple at $0.47319 down 6.71%.
The USD index had to contend with a few issues which pushed it lower into the close. Fed Reserve concerns dragged on the USD as we all await tariff outcomes for China. Also, the EUR got a lift from stronger than expected Industrial Orders out of Germany which also pressured the USD. The AUD and the GBP were relatively unchanged for the session holding a ‘wait and see’ position.
Gold continued to find buyers from technical traders off a solid support zone. Copper continues to come under pressure of US/China trade concerns and as demand from China has eased recently. Oil was lower after US inventories showed an unexpected fall of 4.4M barrels after expectations for a rise of 1.2M.
Locally, the ASX200 was led higher by stronger financials as traders search for bargains in a battered sector. Advancing stocks outnumbered falling ones by 627 to 535 and 374 ended unchanged. Miners continued their poor performance for the week over trade tariff uncertainty for China. All eyes will be on the Trump imposed deadline tonight to see what Monday may bring us. Traders will also be focused on US employment data out tonight in the US.
The ASX200 is expected to open up 30 points as a strong overnight session dragged the SPI200 up through resistance.
ECONOMIC DATA OUT TODAY (AEST) –
EUR German Industrial Production 4pm
GBP Halifax HPI 5:30pm
CAD Employment Rate, Employment Change and Trade Balance 10:30pm
USD Non-Farm Employment Change, Unemployment Rate and Trade Balance 10:30pm
SPI200 INTRADAY LEVELS TO WATCH –