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OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 14/07/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures down 45 pts to 5892
- SP500 down 29.82 pts to 3155.22
- NASDAQ down 226.60 pts to 10390.84
- Dow Jones up 10.50 pts to 26,080.80
- FTSE100 up 80.78 pts to 6176.19
- DAX30 up 166.26 pts to 12,799.97
- GOLD futures US session (Aug) up $3.00 to $1804.90 an ounce
- COPPER futures (Comex Sept) up $0.0125 to $2.9100 a pound
- OIL futures US Session (Nymex Aug) down $0.95 to $39.60 a barrel
- CRB Index down 0.84 pts to 140.68
- AUDUSD trading at 0.6942
- EURUSD trading at 1.1344
- GBPUSD trading at 1.2561
- USDJPY trading at 107.2800
- USD Index US Session (ICE Sept) down 0.104 to 96.510
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US indexes were hit hard mid session as a wave of selling into tech giants triggered a risk off tone across the board. The NASDAQ was hit down 450 points from the intraday highs while the DOW was sold down 550 points into the close. California went back into lockdown which weighed on the market and added to other US states already halting planned re-openings. Investors are now bracing for what may be the biggest drop in quarterly earnings for the SP500 since the GFC with the big banks in focus this week.
Data also showed that the US June deficit also surged to $864 Billion on stimulus spending and a drop in individual and company tax receipts. The DOW managed to close up 0.04% and the broader SP500 was down 0.94% while the Nasdaq was hit hard ending down 2.13% for the session. In Europe, major Indexes ended the session higher on the back of vaccine and stimulus hopes with earnings also coming into focus. The major indexes closed prior to the US selloff so expect to see some serious weakness on the open for the coming European session.
The USD Index initially sold off into previous lows before the major stock indexes took a turn for the worse. The Dollar rallied hard off the lows into the release of the Federal Budget Balance at 4am Sydney time. Buyers jumped in to the safety of the Dollar and we will be watching for signs that the move will continue up through 96.70 which will lead to a further risk off move into shares. The EURUSD was looking good after pushing up through the highs around 1.1370 on the early dollar weakness and positive sentiment in the European session. The move cleaned out some sellers before the currency pair sold off. The move down was relatively contained leaving the Euro looking set to hold a higher low…which will depend solely on the fortunes of the USD. The GBPUSD came under strong selling pressure to move down off the highs around 1.2670. The move down was already well and truly underway as sellers started to jump in at the start of the European session. Even though the move down is extended, we expect to see a further push down to 1.2505 then potentially 1.2450 so watching for another lower high to hold. The AUDUSD gave up earlier gains and was hit hard once the selling got underway into the share market. Expect price to test down to 0.6925 so we will be watching this area today to see if there will be a reaction from buyers. The USDJPY rallied hard through the Asian and European sessions before the USD found some selling pressure. Seems like the safe haven move in to the YEN started early.
SPOT GOLD was choppy after an early rally through the European session as the Dollar was heading lower. Once the dollar rally started, gold buyers were quick to bail and sell the precious metal lower. If the dollar continues to find buyer expect to see a further squeeze lower on gold bugs. Crude Oil was hit lower once the stock market selloff kicked into gear. Price again fell away from the $40 zone and the price action now looks heavy. We expect to see some lower highs pressure buyers and a move down to test previous lows. Copper finally took a hit to get knocked off its perch and held a lower high as recent buyers were quick to lock in some gains. It will be interesting to see how buyers react after the big bull run the last few weeks. Price will still need to do some work around the highs to drag in some short sellers to convince longer term buyers that the highs are in place.
Cryptocurrencies were hit down off their highs along with the stock market fall to give up earlier gains. Bitcoin is currently trading at $9252.0 up 0.20% while Ethereum is at $239.34 up 0.16% and Ripple is at $0.19862 down 0.43%.
The ASX200 opened strong as expected yesterday but faded for most of the session until late afternoon when price rallied into the close to make back some of the lost ground. At the close the index ended up 58.3 points to 5977.5 off the highs of the day at 6007.4. Utilities was the best performing sector being followed by Materials and Metals and Mining while IT found some selling pressure into the close. Falling stocks outnumbered advancing ones by 609 to 573 and 386 ended unchanged.
The ASX200 is expected to open down 50 points as the SPI200 took a hit in the US session to move down into support.
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ECONOMIC DATA OUT TODAY (AEST)
AUD NAB Business Confidence 11:30am
CNY Trade Balance Tentative
JPY Revised Industrial Production 2:30pm
EUR German Final CPI 4pm
GBP GDP, Industrial Production and Manufacturing Production 4pm
EUR Industrial Production and ZEW Economic Sentiment 7pm
USD CPI Data 10:30pm
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SPI200 INTRADAY LEVELS TO WATCH
