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OVERNIGHT MARKET SNAPSHOT FOR FRIDAY 14/08/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures down 3 pts to 6044
- SP500 down 6.92 pts to 3373.43
- NASDAQ up 30.27 pts to 11,042.50
- Dow Jones down 27,896.72 pts to 27,976.84
- FTSE100 down 94.50 pts to 6185.62
- DAX30 down 64.92 pts to 12,993.71
- GOLD futures US session (Aug) up $12.10 to $1947.00 an ounce
- COPPER futures (Comex Sep) down $0.0943 to $2.7967 a pound
- OIL futures US Session (Nymex Sep) down $0.33 to $42.34 a barrel
- CRB Index up 0.58 pts to 148.94
- AUDUSD trading at 0.7149
- EURUSD trading at 1.1816
- GBPUSD trading at 1.3063
- USDJPY trading at 106.9300
- USD Index US Session (ICE Sept) down 0.171 to 93.237
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US indexes were mixed as traders could not justify adding more risk at current levels although the Nasdaq still managed to end with gains. Data on unemployment claims came out prior to market open and put a dampener on sentiment as numbers showed more people applying for unemployment insurance. The numbers remain massive by historical standards to pressure the economy while Congress continue to fight over a stimulus package. Trump has been accused of trying to hurt mail-in voting to benefit his election hopes after he said he was blocking Democrats’ effort to include funds for the US Postal Service and election infrastructure. A lot of the US economy depends on consumer spending so if a further extension to unemployment insurance is off the table in the near term as both parties remain stubborn, then expect to see bulls run out of steam and some stock market gains locked away. The DOW closed down 0.29% and the broader SP500 was down 0.20% while the Nasdaq held gains to end up 0.27% for the session. In Europe, major Indexes were hit into the open as the FTSE dragged on the action. The stronger Pound weighed on the Index while traders locked in gains in banks and energy which have recently outperformed. Also weighing on sentiment was upcoming talks between Beijing and Washington officials over the trade deal as tension between the two nations recently spiked.
The USD Index edged lower as buyers remain fixated on stimulus headlines. The deadlock continues to keep the dollar rangebound for now with both buyers and sellers getting chopped out of the action on price swings up and down. The EURUSD again followed lockstep with the Dollar as price gave up earlier gains from the European session into the close of the US. The GBPUSD rallied from the open of the US session as the Dollar was edging lower. Price pushed to previous highs around 1.3125 before sellers came into the action to move price lower. The Pound will also continue to be rangebound until the US stops playing politics with stimulus. The AUDUSD eventually moved lower reflecting the growing negativity into shares at current levels. Price is being capped at the 0.7185 zone but is also being supported on major dips. The USDJPY held onto recent highs even as the USD was under pressure. Price action was already on the march higher before the USD found buyers on the US session open which suggests expectations for Dollar strength in the near term.
SPOT GOLD showed better signs for the bulls as price edged higher being helped by the weakness into the USD. Price is still playing a waiting game with new buyers happy to stay on the sidelines for now awaiting news on stimulus therefore direction on the dollar. Crude Oil prices moved lower although further weakness as capped by the fall in the USD. Price was finding sellers up towards the 43.00 mark suggesting a pullback to reset if bulls are looking for a stronger move up. Copper fell off a cliff…well a small one…as recent buyers were squeezed out of the action. If price breaks back down through the 2.7740 area, expect to see further pressure on price and for that cliff to be a bit bigger.
Cryptocurrencies had a choppy session but did brush aside weakness into the US close which is a good sign for bulls. Bitcoin is trading at $11648.7 up 0.83% while Ethereum is at $414.33 up 7.58% and Ripple is at $0.28732 up 1.64%.
The ASX200 was sold lower shortly after the open yesterday as bears continued the pressure from the previous session. The index ended down 41 points to 6091 with the Telecom Services and Utilities sectors ending down over 4%. The Nikkei was a shining light during the Asian session as tech companies support the Index. Rising stocks outnumbered declining ones by 744 to 519 and 320 ended unchanged.
The ASX200 is expected to open flat as the SPI200 gave up earlier gains from the European session to follow the US lower.
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ECONOMIC DATA OUT TODAY (AEST)
AUD RBA Gov Lowe Speaks 9:30am
CNY Industrial Production and Retail Sales 12pm
EUR Trade Balance, GDP and Employment Data 7pm
USD Retail Sales Data 10:30pm
USD Industrial Production 11:15pm
USD Consumer Sentiment 12am
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SPI200 INTRADAY LEVELS TO WATCH
