–
OVERNIGHT MARKET SNAPSHOT FOR FRIDAY 7/08/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures down 15 pts to 5986
- SP500 up 21.39 pts to 3349.16
- NASDAQ up 109.67 pts to 11,108.07
- Dow Jones up 185.46 pts to 27,386.98
- FTSE100 down 77.78 pts to 6026.94
- DAX30 down 68.57 pts to 12,591.68
- GOLD futures US session (Aug) up $27.2 to $2058.3 an ounce
- COPPER futures (Comex Sep) down $0.0037 to $2.9133 a pound
- OIL futures US Session (Nymex Sep) down $0.22 to $41.97 a barrel
- CRB Index down 0.10 pts to 148.60
- AUDUSD trading at 0.72335
- EURUSD trading at 1.1873
- GBPUSD trading at 1.3142
- USDJPY trading at 105.5400
- USD Index US Session (ICE Sept) down 0.075 to 92.775
–
US indexes had just another casual move higher as traders continue to be buoyed by expectations for further stimulus. Tech leaders continued to be the main focus for bulls with the fear of missing out driving them higher. Prices were again pumped right from the open and edged higher into the close as investors were happy to hear of signs of progress on the virus aid bill in congress which has a deadline of tonight. Lawmakers on both sides were said to have made concessions to break the deadlock for the bill that is seen as not only critical for the economic recovery but also the stock market bull run. Employment is still a major sticking point and is not showing signs of recovering as a staggering 31.3 million people were receiving unemployment checks in mid July. Other data showed a 54% surge in job cuts announced by employers in July which came after news of a sharp decline in private payrolls for the month. Employment data out tonight may give a clearer picture of the current state of the jobs market with some employers struggling with return workers due to the weekly unemployment benefits supplement. With virus cases continuing to be on the rise, the need to market support from stimulus is even more important to keep the bull run going. The DOW closed up 0.68% while the broader SP500 was up 0.64% and the Nasdaq ended up 1.00% for the session. In Europe, major Indexes were lower for the session as shares on the FTSE100 dragged on sentiment and oil stocks fell. New buyers were happy to remain on the sidelines as they await news on US stimulus.
The USD Index floundered near the recent lows as it was a stalemate between the bulls and bears with no news on stimulus to drive the dollar in either direction. The 92.50 level on the index remains key for bulls to see higher prices but a break is expected to lead to a wave of selling. The EURUSD also swung between gains and losses on a lack of direction from the USD. Price remains around highs of 1.1900 with higher lows holding and pointing to bulls lining up for another rally. The GBPUSD drifted lower as the FTSE was hit on the European open. Price found support from continued weakness into the Dollar but it could not stop the Pound from ending on its lows. Price is still trending higher which is being held at the 1.3100 zone. The AUDUSD was resistant to any move lower early in the European session and quick to rally on any share market strength. Price is now hovering at highs around 0.7240. The USDJPY continued to look supported to reject lows around 105.330. If the dollar rallies on jobs data tonight we expect to see a good squeeze on recent sellers.
SPOT GOLD had another good session as price action continues to go bonkers for the bulls. At this stage there is nothing to stop the move higher as the dollar weakness continues to support the precious metals trend and keep the momentum going. Crude Oil edged lower as price was well contained above the previous higher low around 41.45. Bulls were still not willing to jump into the action until there is movement into the dollar. Copper continues to be supported by the buyers although capped by sellers near highs. The action may kick off tonight and break the deadlock if employment data triggers movement in the USD.
Cryptocurrencies again edged higher as bulls kept the pressure on. Bitcoin is currently trading at $11860.9 up 1.51% while Ethereum is at $396.92 down 2.08% and Ripple is at $0.30753 up 1.71%.
The ASX200 rallied from the open yesterday and then found some sellers midday before making back the losses into the close. In the end the index ended up 40.9 points to 6042.2 with Metals and Mining leading the charge then Materials and Resources a close second. Rising stocks outnumbered declining ones by 657 to 549 and 350 ended unchanged.
The ASX200 is expected to open down 10/15 points as the SPI200 drifted sideways into the US close.
–
ECONOMIC DATA OUT TODAY (AEST)
AUD RBA Monetary Policy Statement 11:30am
AUD RBA Assist Gov Ellis Speaks 11:45am
CNY China Trade Balance Data Tentative
EUR German Industrial Production and Trade Balance 4pm
CAD Employment Change and Unemployment Rate 10:30pm
USD Non-farm Employment Change and Unemployment Rate 10:30pm
–
SPI200 INTRADAY LEVELS TO WATCH
