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OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 1/10/20
- SPI200 (Sept) overnight futures down 58 pts to 5972
- SP500 down 7.70 pts to 3500.31
- NASDAQ up 79.82 pts to 11,775.46
- Dow Jones down 223.82 pts to 28,430.05
- FTSE100 closed
- DAX30 down 87.82 pts to 12,945.38
- GOLD futures US session (Oct) down $0.50 to $1966.30 an ounce
- COPPER futures (Comex Dec) up $0.0355 to $3.0305 a pound
- OIL futures US Session (Nymex Oct) down $0.15 to $42.82 a barrel
- CRB Index down 0.23 pts to 153.21
- AUDUSD trading at 0.7380
- EURUSD trading at 1.1936
- GBPUSD trading at 1.3368
- USDJPY trading at 105.9200
- USD Index US Session (ICE Sept) down 0.199 to 92.180
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US indexes took a breather with the DOW closing lower although losses were limited as Tech again provided support leaving the SP500 range bound. The markets were once again saved by a handful of high flying Tech stocks as Tesla flew ending up 12.57%, Apple ended up 3.3% along with Amazon up 1.45% in an otherwise quiet session. The momentum trade continues as investors flood to tech believing they will do well regardless of the pandemic and economic issues. The Nasdaq is now 20% above its pre-crisis levels which means that there may be a long way to fall if buyers decide to unwind positions. Energy came under pressure to be the biggest drag on the action. The DOW closed down 0.78% along with the broader SP500 which ended down 0.22% while the Nasdaq ended up 0.68% for the session. In Europe, major Indexes started the session with gains but moved lower to end in the red as buyers remained on the sidelines. The FTSE was closed for the session. The bullish mood was killed by disappointing inflationary data out of Germany and Italy which weighed down on Banks.
The USD Index continued to adjust lower after the Feds policy shift on inflation. Even though the shift was largely expected, there remains bears who are looking for more downside in anticipation of further stimulus as they continue to add to recent gains. Like the Nasdaq, the move down is a momentum move thanks to stimulus as traditionally, talk of inflation supports currencies. The dollar may therefore be giving a heads up that the stock market rally and expectations for the recovery have gotten way ahead of itself. The EURUSD continued to gain on the back of the USD weakness as the currency is the heaviest weighted in the basket for the dollar index. Price tested recent highs around 1.1966 but failed as sellers stepped in a triggered some profit taking from late buyers. The GBPUSD also continued higher after cleaning out some buyers to hold a key higher low around 1.3300. Bulls are well and truly in control and looking to keep the momentum going. The AUDUSD traded much the same as the Pound to clean out some late buyers on the open of the European session and then rally once the USD started to press lower. The trend up is held in tact at 0.7340. The USDJPY is outperforming many analysts expectations with the lack of YEN buying to collapse price. The pair is coming under some pressure although the YEN is countering any major selloff as would be expected from fundamentals. YEN buyers are holding off and not supporting the currency proportionally to the USD weakness.
SPOT GOLD had a relatively contained session as earlier weakness was brushed aside and price supported by the move lower into the USD. The longer term up trend remains in tact although awaiting a breakout from the dollar…which at this stage looks to be down. Crude Oil was pressured lower once the dollar moved down which was unusual as we would normally expect support from the weaker USD. This suggests that demand continues to be an issue and the highly indebted industry will continue to be pressured by major revenue and Capex slumps if demand does not significantly increase. Copper continued to charge higher on the dollar weakness to keep the momentum push going.
Cryptocurrencies were mixed for the session with Ethereum again outperforming while others struggled. Bitcoin is currently trading at $11685.3 up 0.50% while Ethereum is at $433.05 up 2.56% and Ripple is at $0.28082 down 0.67%.
The ASX200 struggled to find some buyers yesterday as the Index came under pressure from the open and ended down 13.3 points to 6060.5. The bulk of the pressure came in the Financial Sector with Consumer Discretionary also weaker while Energy and and Gold stocks had a positive day. Rising stocks outnumbered declining ones by 698 to 604 and 347 ended unchanged.
The ASX200 is expected to open down 60 points as the SPI200 fell over through the European and US sessions.
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ECONOMIC DATA OUT TODAY (AEST)
JPY Unemployment Rate 9:30am
JPY Final Maufacturing PMI 10:30am
AUD Building Approvals and Current Account 11:30am
CNY Caixin Manufacturing PMI 11:45am
AUD RBA Rate Statement and Cash Rate 2:30pm
EUR German Final Manufacturing PMI and Unemployment Change 5:55pm
EUR Final Manufacturing PMI 6pm
GBP Final Manufacturing PMI and Mortgage Approvals 6:30pm
EUR CPI Flash Estimate and Unemployment Rate 7pm
CAD Manufacturing PMI 11:30pm
USD ISM Manufacturing PMI 12am
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SPI200 INTRADAY LEVELS TO WATCH
