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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 9/07/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures up 50 pts to 5941
- SP500 up 24.62 pts to 3169.94
- NASDAQ up 148.61 pts to 10492.50
- Dow Jones up 177.10 pts to 26,067.28
- FTSE100 down 33.74 pts to 6156.16
- DAX30 down 121.99 pts to 12,494.81
- GOLD futures US session (Aug) up $7.90 to $1817.80 an ounce
- COPPER futures (Comex Sept) up $0.0273 to $2.8243 a pound
- OIL futures US Session (Nymex Aug) up $0.26 to $40.88 a barrel
- CRB Index up 0.40 pts to 141.96
- AUDUSD trading at 0.6981
- EURUSD trading at 1.1331
- GBPUSD trading at 1.2613
- USDJPY trading at 107.3000
- USD Index US Session (ICE Sept) down 0.414 to 96.425
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US indexes fought back from a weak Asian session and rallied into the close after bulls held support. The market again brushed aside negative data and found some buyers to hold support and clean out bears which may suggest a retest of recent highs may be on the cards into the end of the week. Any fears that the surge in virus cases will slow the economic recovery continue to be shelved as traders seem intent on holding highs and focusing on the coming election. Traders are still happy to seek out growth stocks that are doing well in the low consumption environment such as in tech, software or e-commerce. The DOW closed up 0.68% while the broader SP500 was up 0.78% and the Nasdaq ended up 1.44% for the session. In Europe, major Indexes flowed on from the negative action in the Asian session to end the day down. Traders could not engineer a rally and price drifted lower into the close as rising coronavirus cases weighed on sentiment. Expect to see prices buoyed into the open today and make up for the late rally in the US. UK’s FTSE found some support during the session to cut losses after the finance minister promised another 30 Billion Pounds in stimulus to head off an unemployment crisis.
The USD Index could not follow through on the previous sessions rally and fell to close at support as the US share market rallied. The continued risk on tone into Indexes pressured any safe haven nature of the dollar but we will be watching to see if there is any reaction from bulls at the current levels. A break below the level will be a big ask considering the current virus concerns as it will open up a big move lower and therefore a spike in share market buying. The EURUSD extended the move up into resistance at 1.1350 as the dollar moved down. Price is now at a key level where we would expect to see a reaction from sellers either to lock in some gains or to initiate short trades…but it will of course depend on the USD. The GBPUSD initially flushed lower before finding buyers to ramp price higher and continue the recent up trend. Price may find resistance now up at the 1.2650 zone or further up at 1.2685. The AUDUSD continued to be bullish and mirrored the action on the DOW. Price action was even strong as the DOW was moving lower which suggests there may be a run up to 0.7050 building. The USDJPY was coming under pressure prior to the USD selloff which suggests there were safe haven YEN buyers in the mix. Price is extended through the lows so we expect to see some profit taking to lift the pair in the short term.
SPOT GOLD again found some support from the weakness into the USD as bulls continued the charge higher. Again, we do not believe that the move is solely safe haven buyers and is generally linked to the fortunes of the USD so any rally into the dollar may trigger some profit taking into the precious metal. Crude Oil found buyers to lift price off the $40 area and managed to hold onto the gains into the close. Buyers were happy to see the late rally into the USD and the action may lead to a move up to the $41.50 area in the near term. Copper again saw one way action as buyers continually supported higher levels. At this rate we will trade up to the highs from back in January which may see a wave of profit taking. If the share markets start to see some serious pressure, expect to see carnage into Copper as the bounce up off the lows has blown away most traders expectations.
Cryptocurrencies followed the share markets lead and moved higher to lock in a solid session. Bitcoin is trading at $9423.9 up 1.90% while Ethereum is currently at $247.60 up 3.82% and Ripple is at $0.20371 up 9.80%.
The ASX200 found selling from the open yesterday as bulls went into hiding for the day. The index ended the session down 92.6 points at the close to 5920.3 with the Industrial and Consumer Discretionary sectors leading the charge lower while Gold stocks ended higher. Falling stocks outnumbered advancing ones by 713 to 471 and 346 ended unchanged.
The ASX200 is expected to open up 50 points after the SPI200 held above the day sessions lows and rallied into the close.
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ECONOMIC DATA OUT TODAY (AEST)
NZD ANZ Business Confidence 11am
EUR German Trade Balance 4pm
EUR Eurogroup Meetings All Day
USD Unemployment Claims 10:30pm
USD Final Wholesale Inventories 12am
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SPI200 INTRADAY LEVELS TO WATCH
