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OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 2/09/20
- SPI200 (Sept) overnight futures up 23 pts to 5950
- SP500 up 26.34 pts to 3526.65
- NASDAQ up 164.21 pts to 11,939.67
- Dow Jones up 215.61 pts to 28,645.66
- FTSE100 down 101.52 pts to 5862.05
- DAX30 up 28.87 pts to 12,974.25
- GOLD futures US session (Oct) down $1.30 to $1969.20 an ounce
- COPPER futures (Comex Dec) down $0.0395 to $3.0220 a pound
- OIL futures US Session (Nymex Oct) up $0.39 to $43.00 a barrel
- CRB Index up 0.13 pts to 153.34
- AUDUSD trading at 0.7376
- EURUSD trading at 1.1917
- GBPUSD trading at 1.3391
- USDJPY trading at 105.9500
- USD Index US Session (ICE Sept) up 0.194 to 92.325
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US indexes were once again supported by a handful of stocks in big tech as traders charged straight in from the open. It was a ‘buy the dip’ scenario…well accept for the Nasdaq as it does not seem to pullback. Apple (even after a share split) and Zoom provided support while Tesla gave up some of the previous gains. The SP500 and Nasdaq both ended at all time highs again as tech and stimulus continue to support the momentum trade. Buyer sentiment was supported by moves toward stimulus talks in Washington after US Treasury Secretary Steven Mnuchin said he would telephone House Speaker Nancy Pelosi about stalled aid negotiations…we will see if he actually negotiates this time. Early in the session Factory order data came out better than expected although employment data continued to lag as the labour market recovery losses momentum. Traders will be focused on Fridays jobs report for further evidence that employment is weighing on the economy. The DOW closed up 0.76% along with the broader SP500 which ended up 0.75% while the Nasdaq again ended up 1.39% for the session. In Europe, major Indexes had a choppy session and were generally weak for most of the day. The DAX only ended with gains thanks to a late rally into the close. The FTSE was under pressure right from the open and could not recover even as the US was pushing higher. The Tech sector was the highlight which helped to provide some support to offset the selling pressure after the Eurozone saw weak inflationary data. Inflation turned negative last month putting further pressure on the ECB to inject yet more stimulus to generate price growth.
The USD Index was under pressure early in the Asian session but found buyers once Factory order data was released. Price remains under pressure ahead of employment data Friday. The EURUSD reversed earlier gains to move lower on the dollar strength although the trend up is still technically in tact. Buyers will be closely watching the next move for the USD which will be the lead for the Euro. The GBPUSD also continued to play the same game and gave up gains once the dollar rallied. Price is now right on support and in a zone where buyers would be expected to jump into the action but it will of course be determined by the dollars move today. The AUDUSD rallied early on the USD weakness but faded prior to the rally as European markets came under pressure. The movement shows that buyers are getting weary and not willing to hold for too long. The USDJPY found resistance at 106.090 as the YEN buying faded. If the level holds, a lower high may trigger further sellers into action and test down to the 105.600 area and below.
SPOT GOLD swung along with the movements into the USD as earlier gains were given up on the USD rally. Price ended roughly where it started the day so we will be watching to see if buyers are happy to step back into the action to hold another higher low. Crude Oil continued its choppy action and remains range bound for now. Price is being held up around 42.60 and capped around 43.60 with neither the bulls or bears able to generate any momentum. Copper found some serious selling as recent buyers were squeezed out and put back on the sidelines. The move lower may have been attributed to the rollover to December on the futures contract as price found no support from the dollar rally.
Cryptocurrencies stronger with Ethereum leading the charge. Bitcoin is currently trading at $12019.5 up 2.95% while Ethereum is at $482.32 up 10.70% and Ripple is trading at $0.29341 up 4.56%.
The ASX200 was sold hard on the open yesterday and never recovered to end down 107.1 points 5953.4. The Gold sector was the only sector that ended with some gains (up 0.68%) while IT (down 3.44%), Consumer Staples (down 2.67%) and Energy (down 2.52%) were the hardest hit for the session. Falling stocks outnumbered advancing ones by 867 to 450 and 323 ended unchanged.
The ASX200 is expected to open up 25 points as the SPI200 was led higher into by the Nasdaq.
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ECONOMIC DATA OUT TODAY (AEST)
AUD GDP 11:30am
EUR German Retail Sales 4pm
EUR Spanish Unemployment Change 5pm
EUR PPI 7pm
USD ADP Non-farm Employment Change 10:15pm
USD Factory Orders 12am
GBP MPC Member Broadbent Speaks 12:30am
USD Crude Oil Inventories 12:30am
USD Beige Book 4am
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SPI200 INTRADAY LEVELS TO WATCH
