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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 3/09/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures up 42 pts to 6093
- SP500 up 54.19 pts to 3580.84
- NASDAQ up 116.78 pts to 12,056.45
- Dow Jones up 454.84 pts to 29,100.50
- FTSE100 up 78.90 pts to 5940.95
- DAX30 up 269.18 pts to 13,243.43
- GOLD futures US session (Oct) down $29.60 to $1941.20 an ounce
- COPPER futures (Comex Dec) up $0.0020 to $3.0305 a pound
- OIL futures US Session (Nymex Oct) down $1.18 to $41.58 a barrel
- CRB Index down 1.91 pts to 151.44
- AUDUSD trading at 0.7337
- EURUSD trading at 1.1854
- GBPUSD trading at 1.3353
- USDJPY trading at 106.1500
- USD Index US Session (ICE Sept) up 0.308 to 92.645
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The US index momentum run continues as the bulls charge into risk assets. It is now the DOWs turn to make new highs as price is now only a few points away from a full recovery as the SP500 and Nasdaq again finish at new record highs thanks to continued stimulus from the US Fed Reserve. The high flying tech sector paused but never fear, utilities and other defensive stocks took up the slack to continue the ramp higher. Traders brushed aside earlier data on jobs that failed to hit the mark and fell well short of expectations to show the increasing pressure on the labour market. The data may have raised expectations that the government will feel the pressure and be forced to reach a deal on a new stimulus act. That said, Trumps main focus is on the share market into elections and he seems to be getting more bang for his buck by holding off as the market will go higher on anticipation. If he does not deliver on expectations with a deal, then the market may punish him which we suspect he knows. The DOW closed up 1.59% along with the broader SP500 which ended up 1.54% while the Nasdaq ended up 0.98% for the session. In Europe, major Indexes were higher for the session as an uptick in global manufacturing activity helped support industrial stocks and the Tech sector continued to charge. Buyers took their foot off the peddle into the US open but managed to hold the gains into the close thanks to a strong open to the US stock market.
The USD Index again strengthened off two year lows to pressure other currency pairs lower. Price remains in a downtrend and has minor resistance at 93.42 which is holding the action down. The action may be contained as US payrolls are out Friday and may show further weakness in the labour market recovery. The EURUSD was again pressured lower by the move up in the dollar. Price remains in the rising channel and may again see some buyers drift in to provide support off the lows. The GBPUSD moved down off highs for a second session although remains in its uptrend. Price rejected the 1.3300 level which may trigger some buyers back into action for a move back to the highs….but a rally will depend on the USD. The AUDUSD also corrected lower taking some heat out of the recent run higher. The move was expected so the question is whether bulls have more left and will again support a higher level to keep the rally in tact. The USD is at a level where sellers can re-invigorate the move down so will trigger Aussie buyers into action. The USDJPY found buyers to push up through minor resistance. Price remains on shaky ground so another spike lower may be on the cards.
SPOT GOLD was hit again on the dollar rally. Price is now hovering down above support to temp in gold bugs and buyers to continue the longer term trend higher. If the dollar falls again then expect bulls to swing back into action to rally hard. Crude Oil dropped like a stone even after US inventories came in weaker than expected. The move has flushed out a lot of recent buyers and put them back on the sidelines so any lower high may trigger further selling into the commodity which does not suggest a happy market. Copper managed to again fend off any selling pressure even as the USD rallied suggesting that the bulls are still very active and happy to support prices. As a barometer for the share market, Copper is suggesting further strength while Oil is not so it will be interesting to see which one is correct.
Cryptocurrencies fell hard overnight as the USD put the squeeze on buyers. Bitcoin is trading at $11303.3 down 5.73% while Ethereum was hit hardest and is trading at $435.31 down 10.63% and Ripple is trading at $0.27686 down 6.15%.
The ASX200 bounced back with a vengeance yesterday to brush aside Tuesdays losses. The action started strong and kept up the pressure into the close. In the end, the index ended up 109.8 points to 6063.2 with the Gold sector being the only lagger…but only slightly. The Consumer Discretionary sector was the biggest gainer being closely followed by Utilities and Telecom Services. The weaker than expected GDP number did not seem to phase the market or the Aussie dollar which was quick to make back the minor losses after the data release. Rising stocks outnumbered declining ones by 723 to 575 and 334 ended unchanged.
The ASX200 is expected to open up 40 points to continue the positive move from yesterday after the US continues higher.
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ECONOMIC DATA OUT TODAY (AEST)
AUD Trade Balance 11:30am
CNY Caixin Services PMI 11:45am
EUR Final Services PMI 6pm
GBP Final Services PMI 6:30pm
EUR Retail Sales 7pm
CAD Trade Balance 10:30pm
USD Unemployment Claims and Trade Balance 10:30pm
GBP BOE Gov Bailey Speaks 12am
USD ISM Non-Manufacturing PMI 12am
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SPI200 INTRADAY LEVELS TO WATCH
