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OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 25/08/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures up 39 pts to 6132
- SP500 up 34.12 pts to 3431.28
- NASDAQ up 67.92 pts to 11,379.72
- Dow Jones up 378.13 pts to 28,308.46
- FTSE100 up 102.84 pts to 6104.73
- DAX30 up 301.74 pts to 13,066.54
- GOLD futures US session (Aug) down $11.60 to $1923.00 an ounce
- COPPER futures (Comex Sept) up $0.0067 to $2.9242 a pound
- OIL futures US Session (Nymex Oct) up $0.05 to $42.39 a barrel
- CRB Index up 1.30 pts to 151.26
- AUDUSD trading at 0.7164
- EURUSD trading at 1.1789
- GBPUSD trading at 1.3064
- USDJPY trading at 105.9800
- USD Index US Session (ICE Sept) up 0.065 to 93.305
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The Trump Pump worked out to plan as US indexes followed on from the strong European session to push higher into the close. The optimism over potential medical advances to fight the virus triggered expectations that Trump will fast-track an experimental COVID-19 vaccine being developed by AstraZeneca Plc and Oxford University in hopes that it will be deployed before Americans go to the polls. The rally overnight has more breath and volume to it which suggests more bullishness to come. The DOW is only around 4% off its all time highs and down only 0.8% for the year while the SP500 is up 6.2% year to date and the Nasdaq is up 26.8%. Democrats and Republicans remain at odds over further stimulus and unemployment benefits although any outcome, big or small, will only add fuel to this rally as bears go into hibernation. The DOW closed up 1.35% with the broader SP500 also ended up 1.00% and the Nasdaq lagged the rally ending up 0.60% for the session. In Europe, major Indexes were ramped higher right from the open on the back of hopes for the virus treatment. European stock indexes closed out their biggest day in nearly two weeks as the Plasma news offset fears for a slowing recovery. The path of least resistance continues to be higher which we expect to be supported into the US polls where volatility will start to emerge.
The USD Index came under pressure during the European session but then reversed the losses on the US open to end with minor gains. The dollar continues to hover above the 93.00 level but still remains in a holding pattern awaiting news on stimulus. The EURUSD gave up earlier gains to end relatively flat for the session back down at the days lows. Price is holding major lower highs although looks set to swing higher which suggests weakness into the USD. Longer term price is just oscillating around daily resistance at 1.1830. The GBPUSD is also hovering around a daily resistance zone although seems to be finding shorter term weakness. We expect buyers to soak up any selling pressure for now around the 1.3000 area to continue the longer term range bound action. The AUDUSD struggled between the dollar strength and share market strength with sellers winning out to push prices lower along with the USD rally. Price has support for now around 0.7135 and we expect to see a swing higher today to drag in some more buyers. The USDJPY is holding higher lows in a show of strength as the dollar index holds above 92.50. If price pushes up above 106.060 then we expect to see another leg up.
SPOT GOLD continues to be pressured by the lack of direction into the USD and the lack of a safe haven trade. Price held the 1955 area after a washout of the level to trap some buyers which suggests that price is not willing to make a run at highs in the near term. The 1923 area is providing support for now. Crude Oil had a relatively choppy session as price gained on dollar weakness but then fended off the sellers as the USD rallied back into the US close. Price will be supported by expectations for OPEC production cuts and also increased demand if positive vaccine news continues. Copper gave up earlier gains to end down near the days lows as the USD rally took the wind out of the bulls sails. If price starts to hold around current levels, we expect to see another run at the 3.0000 level.
Cryptocurrencies were relatively flat considering the euphoria into the share markets. Bitcoin is currently trading at $11766.1 up 0.90% while Ethereum is at $406.82 up 3.35% and Ripple is at $0.28874 up 1.09%.
The ASX200 started the session on the back foot yesterday but buyers managed to grind out some gains into the close. The index ended up 18.4 points to 6129.6 as bulls found some support from Trumps Plasma news. The IT sector was the charger for the day up over 3% while Telecom Services and Consumer Discretionary were not far behind. Rising stocks outnumbered declining ones by 718 to 570 and 349 ended unchanged.
The ASX200 is expected to open up 40 points as the SPI200 was ramped higher along with major European and US indexes.
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ECONOMIC DATA OUT TODAY (AEST)
JPY BOJ Core CPI 3pm
EUR German Final GDP 4pm
EUR German ifo Business Climate 6pm
USD Consumer Confidence 12am
CAD Gov Council Member Schembri Speaks 3:30am
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SPI200 INTRADAY LEVELS TO WATCH
