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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 13/08/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures up 42 pts to 6130
- SP500 up 46.66 pts to 3380.35
- NASDAQ up 229.42 pts to 11,012.24
- Dow Jones up 289.93 pts to 27,976.84
- FTSE100 up 125.78 pts to 6280.12
- DAX30 up 111.74 pts to 13,058.63
- GOLD futures US session (Aug) down $22.0 to $1910.60 an ounce
- COPPER futures (Comex Sep) up $0.0062 to $2.8817 a pound
- OIL futures US Session (Nymex Sep) up $0.95 to $42.56 a barrel
- CRB Index up 1.50 pts to 148.36
- AUDUSD trading at 0.7158
- EURUSD trading at 1.1783
- GBPUSD trading at 1.3033
- USDJPY trading at 106.8700
- USD Index US Session (ICE Sept) down 0.195 to 93.405
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US indexes brushed aside the previous sessions weakness into the close and proved to be another ‘buy the dip’ scenario for the bulls as they await news on stimulus. The SP500 is set to make new all time highs with the DOW not far behind which is a great achievement in this environment. Markets in the US have had a wave of negative news thrown at it but bulls remain firmly in charge. The hope of further stimulus continues to support buyers and delaying tactics from the government seem to be working. Even after Treasury Secretary Steven Mnuchin said the White House and top Democrats in Congress may not be able to reach a deal, buyers continue to dive in and support pullbacks. This seems more due to the fact that bears have given up and are on the sidelines and momentum up is strong. Inflationary CPI data came out better than expected to dispel any fears of further deflation leading bond yields to rally slightly. Any further increases in CPI would be capped by continued pressure from unemployment and expectations for further dollars to be pumped into the system. The DOW closed back up 1.05% while the broader SP500 was up 1.40% and the Nasdaq fought back ending up 2.13% for the session. In Europe, major Indexes moved higher from the open on the back of a series of better than expected data releases. The data triggered traders to continue to bet on a stimulus led recovery and support share prices.
The USD Index came under pressure off resistance around 94.00 but found some buyers into the US close. If the congress can come to some sort of agreement on stimulus, which seems more unlikely in the near term, then expect a move lower on the dollar. For now price may remain in a holding pattern. The EURUSD was just mirrored the movements in the Dollar but in reverse as price was held up off support around 1.1710. There is no real reason yet for bulls to close out longs so expecting price to hold support for now. The GBPUSD continues to be bought up off the 1.3000 zone but has held a minor lower high into the area. Expecting to see some buyers off higher lows and for the range to hold being capped around 1.3160. The AUDUSD was supported again by weakness into the USD and strength into shares. Price action over the previous few sessions has been choppy suggesting a lack of conviction from new buyers. The USDJPY continued its march higher after a whippy early start to the trend. Price looks set to rally on expectations for further near term weakness into the USD.
SPOT GOLD started to recover from a heavy selloff once the USD started to fall although price was capped around 1950 before giving up some of the gains on the back of the USD bounce. Buyers will need to make a stand around the 1900 level to stop another selloff in price. Crude Oil was supported by weaker than expected US inventory data and bulls expect to see increased demand. Price is still whippy but slowly building support so we are watching for the 41.50 zone to now hold. Copper also found support from the dollar move as price rallied up through previous highs at 2.8830 (on the futures price). Price continues to chop around as share markets move higher but any further buyers seem reluctant to jump into the action until the stimulus deadlock is worked out.
Cryptocurrencies made back some of the lost ground from the previous sessions. Bitcoin is currently trading at $11501.7 up 2.47% while Ethereum is at $384.91 up 2.85% and Ripple is at $0.28090 up 2.11%.
The ASX200 opened and went lower yesterday before floundering for most of the session into the close where it rallied to minimise the losses. In the end the Index closed down 6.7 points to 6132 with the Gold sector the weakest by far. Falling stocks outnumbered advancing ones by 828 to 456 and 308 ended unchanged.
The ASX200 is expected to open up 45 points after the SPI200 pushed back up to highs on a positive US session.
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ECONOMIC DATA OUT TODAY (AEST)
AUD Employment Change and Unemployment Rate 11:30am
EUR German CPI Data 4pm
USD Unemployment Claims 10:30pm
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SPI200 INTRADAY LEVELS TO WATCH
