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OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 19/08/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures down 7 pts to 6062
- SP500 up 7.79 pts to 3389.78
- NASDAQ up 81.12 pts to 11,210.84
- Dow Jones down 66.84 pts to 27,778.07
- FTSE100 down 50.82 pts to 6076.62
- DAX30 down 38.90 pts to 12,881.76
- GOLD futures US session (Aug) up $13.8 to $1998.80 an ounce
- COPPER futures (Comex Sep) up $0.0715 to $2.9730 a pound
- OIL futures US Session (Nymex Sep) down $0.34 to $42.55 a barrel
- CRB Index up 0.82 pts to 151.69
- AUDUSD trading at 0.7243
- EURUSD trading at 1.1933
- GBPUSD trading at 1.3245
- USDJPY trading at 105.4300
- USD Index US Session (ICE Sept) down 0.547 to 92.300
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US indexes again ended mixed with buyers sticking to Tech stocks to continue the push higher on the NASDAQ for its 18th record closing high (since early June) while the DOW again moved lower. The SP500 was dragged up into new all time highs as the most crowded trade into tech continues and may have ended the shortest bear market in history. As bond yields remain pinned lower then the money that is in the system will continue to go to Tech for yield. Traders continue to await news on stimulus while repeating the mantra ‘don’t fight the Fed’. Many remain concerned that the highs on the major Indexes do not reflect the health of the economy at all and it is simply asset inflation thanks to free money. It will not take much for a sharp correction if traders decide to book some gains on a few key stocks namely the FAANGS. The DOW again closed down 0.24% while the broader SP500 was up 0.23% along with the Nasdaq that ended up 0.73% for the session. In Europe, major Indexes finished the session down as energy and banking stocks led the market lower. Traders remain concerned over US-China trade tensions; after the Trump administration expanded its curbs on Huawei; and record levels in US equities as the tech bubble continues.
The USD Index moved below the key 92.50 level ahead of the FOMC meeting minutes tonight. Price could fall apart if the bears persist with the next level of support to come in around 91 then down to 88 in the long term. The EURUSD did its thing to take trade lock step with the dollar and break up through highs at the 1.1900 zone. If buyers start to support a pullback then expect to see a run higher. The GBPUSD took off as the dollar fell and price ramped straight up and through highs around 1.3185. Much the same as the Euro, watching for the reaction from buyers on the first key pullback as to whether we can expect new highs. The AUDUSD found choppier price action than the other major pairs although continued its march higher. The USDJPY fell lower under the weight of the USD. The move is expected to continue as long as sellers persist into the USD so all eyes remain on the dollar.
SPOT GOLD ended the session higher but showed it remains susceptible to any rally into the USD. Bulls remain in control but will be watching the reaction of the Dollar to the US Feds minutes tonight. Crude Oil bounced back from a USD related selloff to end slightly lower although prices were supported by high compliance levels from OPEC members regarding production cuts. Data shows that 95-97% of members have stuck to the cuts to support demand for the commodity. Copper blasted away any bears with a move back to highs around 2.9875. The move was supported by the USD weakness below 92.50. Any further weakness into the Dollar from here will see bulls come out of the woodwork for a run higher on Copper.
Cryptocurrencies gave up a lot of the previous sessions gains on a move lower at the start of the US session. Bitcoin is currently trading at $12050 down 2.21% while Ethereum is at $428.19 down 2.39% and Ripple is at $0.30802 down 5.59%.
The ASX200 initially came under some selling pressure early in the session yesterday before price turned on a dime and rallied 60 points off its lows. The move up was thanks to the RBA showing some optimism around the economy and lower covid cases in Victoria and NSW. At the close the Index ended up 47 points to 6123.4. Rising stocks outnumbered declining ones by 776 to 478 and 358 ended unchanged.
The ASX200 is expected to open down 5 points after the SPI200 lacked direction overnight.
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ECONOMIC DATA OUT TODAY (AEST)
JPY Core Machinery Order and Trade Balance 9:50am
GBP CPI and PPI Data 4pm
EUR Current Account 6pm
EUR CPI Data 7pm
ALL OPEC Meetings All Day
USD Crude Oil Inventories 12:30am
USD FOMC Meeting Minutes 4am
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SPI200 INTRADAY LEVELS TO WATCH
