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OVERNIGHT MARKET SNAPSHOT FOR FRIDAY 21/08/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures up 10 pts to 6082
- SP500 up 10.66 pts to 3385.51
- NASDAQ up 118.49 pts to 11,264.95
- Dow Jones up 46.85 pts to 27,739.73
- FTSE100 down 98.64 pts to 6013.34
- DAX30 down 147.33 pts to 12,830.00
- GOLD futures US session (Aug) down $10.4 to $1948.30 an ounce
- COPPER futures (Comex Sep) down $0.0327 to $2.9903 a pound
- OIL futures US Session (Nymex Sep) down $0.35 to $42.58 a barrel
- CRB Index down 1.18 pts to 150.82
- AUDUSD trading at 0.7192
- EURUSD trading at 1.1862
- GBPUSD trading at 1.3217
- USDJPY trading at 105.7900
- USD Index US Session (ICE Sept) down 0.128 to 92.752
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US indexes managed to end the session with gains after another ramp up in tech shares off the opening lows. US employment took a hit after a surprise jump in jobless claims to more than 1 million for last week. The numbers confirm the Fed Reserves comments on slowing jobs and economic growth. The data did little to slow the bulls with buyers brushing aside a weak open to push prices up into positive territory at the close with the Nasdaq again closing at new all time highs. It seems that the jobs data renewed expectations for further big stimulus sooner rather than later to support the unemployed and keep businesses solvent. Either way the expectations for a pullback and market top seem to be fading which is shown in the US options market and Fund Mangers decreasing cash levels. For the bulls case this provides support…but for the bear case they may just be late to the party and making up for staying on the sidelines for the majority of the bounce and again timing it badly. The DOW closed up 0.17% with the broader SP500 also ending up 0.32% all thanks to the Nasdaq that ended up 1.06% for the session. In Europe, major Indexes came under pressure from the open as the previous US sessions negativity flowed over to the Asian then European sessions. Miners and Banks led the decline as the USD was rallying but the move lower may again reverse on the open after the positive US session.
The USD Index was hanging onto gains through the European session into the US unemployment data when sellers pushed the index lower back below the 93.00 level on renewed stimulus hopes. Again the 92.50 level is the important zone which will need to hold for a further squeeze on sellers and move up. The EURUSD saw a choppy session with the bulls being less convincing than usual on the USD selloff. Buyers are not showing expectations for further weakness into the Dollar as price was capped at earlier highs around 1.1870. The GBPUSD bounced back hard after the previous sessions selloff being buoyed by the dollar weakness but brushing aside growing concerns for the latest round of Brexit talks. The move pushed price back to recent highs and found an inside resistance zone at 1.3225. If this level holds, then we expect to see recent buyers forced to lock in some gains and price to move lower. The AUDUSD was under pressure until the US open when the Dollar fell and US shares started the march higher. The recent push to the lows at 0.7140 may keep further buyers on the sidelines as the choppy action continues to whip traders in and out of the market. The USDJPY moved lower through the Asian session and into the US close as buyers remained on the sidelines. The squeeze played out nicely so we will be watching now for a higher low in anticipation of USD Index strength off 92.50.
SPOT GOLD found itself range bound as price move between support at 1925 and resistance at 1954. The move lower in the USD did not seem to trigger any serious buying into Gold so we expect the minor resistance to hold for now and any move up to be muted. Crude Oil saw a fun session as price spiked lower to fall over a dollar and then just as quickly recover the losses. The spike lower was due to OPEC supply concerns as expectations are that further cuts are needed as Global demand is not as strong as expected due to the prolonged recovery. Copper remained bullish but the recent move up seems to be running out of steam. If price starts to unwind again and move lower off the 3.000 level then we expect to see more sellers triggered into action.
Cryptocurrencies managed to edge higher off recent lows overnight to end with minor gains. Bitcoin is currently trading at $11878.5 up 1.39% while Ethereum is at $418.61 up 3.22% and Ripple is at $0.29259 up 2.39%.
The ASX200 was sold down on the open yesterday to wash away some of the previous sessions gains. The index managed to limit some of the damage into the close to end down 47.6 Points to 6120. The Energy sector was down over 3% which was followed by Gold down 1.61% and then Resources down 1.46%. Falling stocks outnumbered advancing ones by 662 to 551 and 387 ended unchanged.
The ASX200 is expected to open up 10 points after the SPI200 moved up off the days session lows.
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ECONOMIC DATA OUT TODAY (AEST)
GBP Retail Sales 4pm
EUR French Flash Manufacturing and Services PMI 5:15pm
EUR German Flash Manufacturing and Services PMI 5:30pm
EUR Flash Manufacturing and Services PMI 6pm
GBP Flash Manufacturing and Services PMI 6:30pm
CAD Retail Sales Data 10:30pm
USD Flash Manufacturing and Services PMI 11:45pm
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SPI200 INTRADAY LEVELS TO WATCH
