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OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 18/08/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures up 31 pts to 6052
- SP500 up 9.14 pts to 3381.99
- NASDAQ up 110.43 pts to 11,129.73
- Dow Jones down 86.11 pts to 27,844.91
- FTSE100 up 37.40 pts to 6127.44
- DAX30 up 19.32 pts to 12,920.66
- GOLD futures US session (Aug) up $38.90 to $1975.90 an ounce
- COPPER futures (Comex Sep) up $0.0490 to $2.9080 a pound
- OIL futures US Session (Nymex Sep) up $0.80 to $42.81 a barrel
- CRB Index up 1.66 pts to 150.87
- AUDUSD trading at 0.7216
- EURUSD trading at 1.1872
- GBPUSD trading at 1.3108
- USDJPY trading at 106.0300
- USD Index US Session (ICE Sept) down 0.257 to 92.828
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US indexes again ended the session mixed with the Nasdaq moving into new all time highs to drag the SP500 up with it while the DOW ended lower. It is all about the tech trade as many companies have benefited from lockdown and curbs on social activity. Caution may filter into the market as the election season kicks into higher gear. Volume on US exchanges was below the average for the previous 20 trading days. A rally in Chinese stocks also supported the positive sentiment going into the European and US sessions. Italy have reimposed restrictions as cases have doubled over the past two weeks which tempered the expectations for global economic recovery. US earnings season wraps up with major retailers this week to end a season that was better than expected. The DOW closed down 0.31% while the broader SP500 was up 0.27% along with the Nasdaq that ended up 1.00% for the session. In Europe, major Indexes also started the week on a positive note to end with gains as China exposed companies gained on the back of fresh stimulus for the worlds second largest economy. Growing virus cases in Europe kept the rally in check as new infections look unlikely to slow down in the near term. Traders remain in a bit of a holding pattern waiting for further data on the pace of the economic recovery and with the US Fed Reserves policy minutes due Wednesday.
The USD Index moved lower through the European and US sessions back down to support levels as safe haven Bond prices rallied and the risk on move into shares continues. We do not expect to see too much more downside on the USD until further news on stimulus. The dollar has also come under pressure of late due to traders favouring the Euro as US interest rates are held down. The EURUSD rallied to move up to the top end of the range around 1.1900. The recent trend is up but we do expect to see a reaction from sellers up at resistance. The GBPUSD was a choppy mess all session as neither buyers or sellers were willing to commit to a move up or down. Price was capped into 1.3125/1.3130 and held above 1.3075. Price is holding minor higher lows but does look heavy so watching for a potential move lower. The AUDUSD benefited from the Chinese stimulus and a weakening USD as price rallied back toward recent highs around 0.7240. The USDJPY had another leg down as the USD moved lower. Price may start to find some buyers at current levels which is a previous consolidation area but for now, the trend is down.
SPOT GOLD had a strong rally as buyers extended the move up off recent lows around $1864. The weaker USD supported the action to keep the bulls happy. We may see some heat come out of the move up before any continuation and buying opportunity. Crude Oil brushed aside a move lower in the European session to spike higher into the US close on the back of expectations for increased demand from China. Price now has the 43.50 zone in its sights. Copper extended Fridays move up to rally into the US close. Bulls were supported by the weaker USD and Chinas economic rebound which is expected to lift demand for the metal.
Cryptocurrencies had a good US session as prices rallied across the board. Bitcoin charged higher and is currently trading at $12332.6 up 4.05% while Ethereum is at $438.19 up 1.58% and Ripple is at $0.32391 up 7.76%.
The ASX200 had a very choppy session after the open yesterday as price swung a few times in a 30/35 point range before price settling down near the days lows. At the close the Index was down 49.8 points to 6076.4 with Financials and Telecom Services fairing the worst. Rising stocks outnumbered declining ones by 678 to 578 and 350 ended unchanged.
The ASX200 is expected to open up 30 points after the SPI200 rallied off the days lows in the overnight session.
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ECONOMIC DATA OUT TODAY (AEST)
AUD Monetary Policy Meeting Minutes 11:30am
USD Building Permits and Housing Starts 10:30pm
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SPI200 INTRADAY LEVELS TO WATCH
