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OVERNIGHT MARKET SNAPSHOT FOR MONDAY 7/09/20
- SPI200 (Sept) overnight futures down 36 pts to 5875
- SP500 down 28.10 pts to 3426.96
- NASDAQ down 144.97 pts to 11,313.13
- Dow Jones down 159.42 pts to 28,133.31
- FTSE100 down 51.78 pts to 5799.08
- DAX30 down 215.11 pts to 12,842.66
- GOLD futures US session (Oct) up $3.10 to $1933.30 an ounce
- COPPER futures (Comex Dec) up $0.1010 to $3.0760 a pound
- OIL futures US Session (Nymex Oct) down $1.60 to $39.77 a barrel
- CRB Index down 0.73 pts to 149.69
- AUDUSD trading at 0.7282
- EURUSD trading at 1.1838
- GBPUSD trading at 1.3279
- USDJPY trading at 106.2400
- USD Index US Session (ICE Sept) up 0.075 to 92.808
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US indexes were saved from another big selloff as bulls fought back and rallied stocks into the close Friday. The NASDAQ closed weak but well off its lows as the tech selloff continued with investors starting to get concerned about high valuations. At one stage the Index was down 5.3% to follow on from the previous sessions beating. News out that Japans Softbank had inflated the Nasdaq through its options trading and hedging into the Index only added to the concern. US employment data came out mixed with the unemployment rate moving to 8.4% from 10.2% while the number of new jobs increased less than expected for the month. The data release will do little to help the progress of talks for fresh stimulus as it was not good enough to get the market excited or bad enough to get lawmakers moving to agree on a package. DOW closed down 0.56% while the broader SP500 ended down 0.81% and the Nasdaq ended down 1.27% for the session. In Europe, major Indexes also ended the week on a low note as traders grew concerned over tech stocks. There was some initial bargain hunting into the DAX and the FTSE early in the session but it soon gave way to selling pressure into the close as the US opened and was hit hard.
The USD Index rallied on the back of the employment data although the rally soon faded and sellers pressured prices lower. Traders are now forced to mull over further stimulus so we expect to see increased volatility into the dollar as mixed employment signals throw a spanner in the works of another big stimulus package. The EURUSD found some sellers on the dollar rally which was quickly soaked up leaving the Euro to close the session around where it started. Price now looks set to consolidate until the USD picks a direction. The trend up remains in tact for now. The GBPUSD also fended off sellers to bounce back from USD triggered weakness. The Pound looks ready for another run up to retest the highs so watching for a higher low to hold. The AUDUSD was hit hard on the US employment data but did manage to bounce back strong as the Nasdaq worked its way up off the session lows into the close. Seems that there remains a buy the dip mentality so a move up through 0.7300 on the Aussie may trigger further buyers looking for the Nasdaq to recover the recent losses. The USDJPY also saw some chop on the dollar movements but ended the session relatively unchanged. Price is caught between a lower high and higher low but the action today may be muted with the US closed for Labour Day holiday.
SPOT GOLD was mixed but continues to go in line with the USD action. Price spiked down as the USD rallied and then regained the losses along with the fall into the USD after the data release. Gold bulls will now want to see the lows around 1920 hold and the USD fall to fend off serious selling pressure into the precious metal. Crude Oil was hit hard as the dollar rallied but, unlike gold, did not make back any of the losses into the close. The action is not reflective of further strength into shares and shows that buyers maybe factoring in a slow down in global growth and therefore demand. Copper on the other hand took off thanks to a strong move from the bulls. Price traded straight back up to the recent highs around 3.0850. The move looks more like a big flush of recent sellers as the move was all one sided.
Cryptocurrencies continued to come under pressure as Bitcoin moved back below the 10000 level Friday and then again on the weekend. Bitcoin managed to hold above the level to bring in some buyers and is currently trading at $10295.2 up 2.09%. Ethereum also fought back off the lows and is trading at $355.44 up 9.71% while Ripple is at $0.24170 up 2.30%.
The ASX200 came unhinged Friday and was hit hard on the open and could not recover to end the session down 187.10 to 5925.5. Bulls were left licking their wounds as it was a sea of red across all sectors. The IT sector was hit hardest down 5.59% on the day while Consumer Staples and Metals and Mining were not far behind. Falling stocks outnumbered advancing ones by 1016 to 297 and 318 ended unchanged.
The ASX200 is expected to open down 30 points as the SPI200 was saved from a deeper selloff by a bounce into the US close.
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ECONOMIC DATA OUT TODAY (AEST)
AUD ANZ Job Adverts 11:30am
CNY Trade Balance Tentative
EUR German Industrial Production 4pm
USD Bank Holiday
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SPI200 INTRADAY LEVELS TO WATCH
