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OVERNIGHT MARKET SNAPSHOT FOR MONDAY 13/07/20
- SPI200 (Sept) overnight futures up 95 pts to 5971
- SP500 up 32.99 pts to 3185.04
- NASDAQ up 69.69 pts to 10617.44
- Dow Jones up 369.21 pts to 26,075.30
- FTSE100 up 45.79 pts to 6095.41
- DAX30 up 144.25 pts to 12,633.71
- GOLD futures US session (Aug) down $1.90 to $1801.90 an ounce
- COPPER futures (Comex Sept) up $0.0752 to $2.9137 a pound
- OIL futures US Session (Nymex Aug) up $0.93 to $40.55 a barrel
- CRB Index up 1.06 pts to 141.52
- AUDUSD trading at 0.6950
- EURUSD trading at 1.1300
- GBPUSD trading at 1.2622
- USDJPY trading at 106.9300
- USD Index US Session (ICE Sept) down 0.048 to 96.625
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US indexes ended the week with a solid rally as bulls stepped back into the action again in a risk on mode. Traders brushed aside the global increase in new coronavirus cases to ramp prices higher right from the open. Buyers were supported early in European trade to shed pre-market weakness after drug maker Gilead Sciences released potentially promising data about remdesivir that indicates the experimental COVID-19 drug may reduce deaths. Concern still remains for further lockdowns as many countries record increases in new virus cases as the US records the largest one day increase in any country since the pandemic emerged in China last year. Traders will be eagerly awaiting US earnings which kicks off this week for an indication of how companies are traveling under the virus strain. The DOW closed up 1.44% and the broader SP500 was up 1.05% while the Nasdaq continued the march higher ending up 0.66% for the session. In Europe, major Indexes also got a boost from better than expected economic data out of Italy and France. Upbeat industrial production data helped to support hopes for an economic recovery and offset the concerns over further lockdowns. Italy reported a 42.1% rise in production in May and forecast further gains in June and July data ahead.
The USD Index drove lower at the start of the European session on the back of the vaccine news as traders exited the safe haven. Price retested the key support zone around 96.45 to bounce into the US close. We will be watching the reaction from buyers today to see if they are happy to lift price off the support area or whether they will leave it to head lower as sellers pressure price action. The EURUSD was supported around 1.1260 as the USD found sellers. Price managed to rally all session but did back away from highs into the close of US trade. Price has opened slight stronger today suggesting that there are some lingering bulls around from last week. A move back up through 1.1320 opens the door for a rally to 1.1360 and beyond but that would depend on the USD falling apart through key support levels. The GBPUSD also got a boost from the weakness into the USD to rally up into resistance before finding sellers into the close. Price may struggle to kick higher so watching now for a lower high to build the selling pressure. The AUDUSD gave up early weakness to rally at the start of the European session along with the risk on tone in the market. If price holds below 0.6970 we may see a retest of the lows down to 0.6930 but that will of course depend on the sentiment today into shares. The USDJPY found initial weakness as the USD fell after the vaccine news. Price action was later buoyed as buyers supported price back into lows. Seller look set to test down to the 106.500 zone in the near term.
SPOT GOLD initially found support from the fall in the USD but was quick to give up the gains on any sign of strength in the dollar. Price held a lower high around 1809 and ended the week just off support around 1796. A break of this support zone will trigger some sellers into the precious metal as buyers lock in some gains. Crude Oil was ramped higher from earlier weakness as the USD came under pressure. The spike cleaned out all of the recent sellers off the $40 zone who were expecting the start of a leg lower. Expect to see any further share market strength support Oil. Copper took off once the weakness into the dollar started. Price was clearly being supported earlier on dollar strength so it is obvious which way the market is biased. Price is well and truly extended at current levels so we would expect to see selling on any sign of USD strength.
Cryptocurrencies held up well over the weekend being supported by buyers to hold prices around Fridays highs on positive share market sentiment. Bitcoin is currently trading at $9290.3 up 0.75% while Ethereum is at $240.04 up 0.47% and Ripple is at $0.20069 down 0.12%.
The ASX200 was held down by selling pressure all of the session Friday and ended down 36.3 points to 5919.2 at the final bell. All sectors were down for the day except Consumer Staples. The Energy and Gold sectors weighed the most on the action while Resources were not far behind. Falling stocks outnumbered advancing ones by 699 to 504 and 372 ended unchanged.
The ASX200 is expected to open up 90 points after the SPI200 ended the week with a bang to make back Fridays day session losses plus some.
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ECONOMIC DATA OUT TODAY (AEST)
EUR German WPI 4pm
GBP BOE Gov Bailey Speaks 1:30am
USD FOMC Member Williams Speaks 1:30am
USD Federal Budget Balance 4am
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SPI200 INTRADAY LEVELS TO WATCH
