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OVERNIGHT MARKET SNAPSHOT FOR FRIDAY 4/09/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures down 119 pts to 5993
- SP500 down 125.78 pts to 3455.06
- NASDAQ down 598.34 pts to 11,458.10
- Dow Jones down 807.77 pts to 28,292.73
- FTSE100 down 90.09 pts to 5850.86
- DAX30 down 185.66 pts to 13,057.77
- GOLD futures US session (Oct) down $7.10 to $1929.80 an ounce
- COPPER futures (Comex Dec) down $0.0413 to $2.9792 a pound
- OIL futures US Session (Nymex Oct) down $0.23 to $41.28 a barrel
- CRB Index down 1.02 pts to 150.42
- AUDUSD trading at 0.7275
- EURUSD trading at 1.1851
- GBPUSD trading at 1.3280
- USDJPY trading at 106.1600
- USD Index US Session (ICE Sept) down 0.064 to 92.770
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US indexes were hit hard from the open after the Nasdaq gapped down and never looked back seeing some strong selling pressure into the close. Buyers may have been taking the opportunity to lock in some gains ahead of the US employment data tonight which is expected to show a continued labour market slowdown. Recent data showing slowing growth, and as the boost from stimulus and business reopenings is fading, has investors concerned. All this is while the government continues to haggle over further stimulus measures and add to the downward pressure…but do not be surprised if Trump tweets something soon prior to market open to try and support the action. Something was bound to give so the question is now whether the pressure continues and buyers start to get nervous and run for the exits. DOW closed down 2.78% along with the broader SP500 which ended down 3.51% while the Nasdaq led the charge ending down 4.96% for the session. In Europe, major Indexes started the session on a bullish note but then the sentiment faded and prices were hit hard into the close as the US fell apart. The wave of tech selling caught many bulls off guard and triggered the sudden turn in price action so we may see some further pressure on the open today lacking any attempt of support from the US government prior to the European open.
The USD Index was recovering but gave up the gains after weekly jobless claims fell more than expected. If price starts to find further weakness, then expect to see another move to the lows and support for commodities…although this will be offset by stock market weakness and demand fears. The EURUSD action was choppy as the USD moved from gains to losses. The next move for the Euro will obviously depend on the USD although we expect the action will be contained for now until the US employment data release tonight. The GBPUSD moved lower and did not really react to USD selling as with the Euro. If the action holds below the 1.3297 zone in the short term, then expect to see a move down through 1.3250. The AUDUSD worked its way lower right from the Asian session open until the close of the US. Buyers were happy to unwind long positions as share markets came under pressure so the theme is expected to continue on the open of the ASX today. The USDJPY came under pressure from both the USD selling and safe haven YEN buyers. Price managed to find some buyers into the close to stem the tide although there remains a lot of buyer fuel to be squeezed out if the USD takes another hit.
SPOT GOLD held up okay as the USD weakened and provided some support. Buyers were initially in two minds as the dollar found some strength to push gold lower but then buyers fought back as the dollar fell. Aussie gold may find some support as the AUD moves lower and outweighs any Gold sellers which will provide some support for local gold stocks. We may see some action from safe haven buyers if shares start to take further hits although price remains linked to the USD. Crude Oil continued to be hampered by expectations for weaker demand on slowing global growth. Price came under pressure right from the Asian session open and only found some buyers once the US session got underway although the action was choppy and bulls could not get traction due to share market weakness. Price is now set to hold further lower highs but may find support from the USD if sellers step back in. Copper was hit with buyers stepping aside and sellers pushing price back down through the 3.000 zone. The longer term trend is still up but expect to see further selling on demand concern if share Indexes come under further pressure.
Cryptocurrencies were again hit hard as buyers ran for cover and were quick to lock in gains from the recent run up. Bitcoin is currently trading at $10727.3 down 5.86% while Ethereum is at $400.19 down 9.19% and Ripple is at $0.26270 down 5.29%.
The ASX200 yesterday continued on from where it left off the previous session to add to the gains and move up through the 6100 level. Buyers pushed the index higher from the open to end the day up 49.4 points to 6112.6. The gains were made in the Consumer Discretionary, Financials and Consumer Staples sectors while Metals and Mining lagged the most. Rising stocks outnumbered declining ones by 696 to 562 and 371 ended unchanged.
The ASX200 is expected to open down 115 points after the SPI200 was hit hard overnight.
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ECONOMIC DATA OUT TODAY (AEST)
AUD Retail Sales 11:30am
EUR German Factory Orders 4pm
EUR French Gov Budget Balance 4:45pm
GBP MPC Member Saunders Speaks Tentative
CAD Employment Change and Unemployment Rate 10:30pm
USD Non-Farm Employment Change and Unemployment Rate 10:30pm
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SPI200 INTRADAY LEVELS TO WATCH
