–
OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 8/09/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures up 25 pts to 5945
- SP500 closed
- NASDAQ closed
- Dow Jones closed
- FTSE100 up 138.32 pts to 5937.40
- DAX30 up 257.62 pts to 13,100.28
- GOLD futures US session (Oct) up $0.60 to $1926.80 an ounce
- COPPER futures (Comex Dec) up $0.0085 to $3.0705 a pound
- OIL futures US Session (Nymex Oct) down $0.70 to $39.07 a barrel
- CRB Index closed
- AUDUSD trading at 0.7278
- EURUSD trading at 1.1813
- GBPUSD trading at 1.3162
- USDJPY trading at 106.2900
- USD Index US Session (ICE Sept) up 0.331 to 93.050
–
US indexes were closed for action due to the Labor Day long weekend giving tech stocks a break. Trump talked about ‘decoupling’ trade from China in a labor day speech saying that they would ‘not lose Billions of dollars if the world’s two biggest economies no longer did business’ but would bring jobs back to the US. Expect that this will again increase tensions with China and spook the markets. The move is a campaign speech ahead of the Nov 3 elections but may pressure the markets at a time when tech shares are under pressure. In Europe, major Indexes played catchup to the US sessions close from Friday when the Nasdaq bounced hard off the lows. Generally the overnight action was subdued after the open as the key focus remains US big tech. Many traders are now expecting that the Nasdaq will have further to move on the downside and will be watching the coming US session action for direction. Brexit talks were plunged into crisis following Britain’s threat to override its EU divorce deal. The change in tone for Brexit weighed heavily on the Pound which helped many bluechip stocks that earn from overseas and supported the FTSE index.
The USD Index rallied slightly in a quiet session as Asian shares were tentative and on expectations for further pressure into big tech shares. There is a lot of macroeconomic data out this week that will further shed light on the global economy so traders are in a holding pattern for now. The EURUSD drifted lower in a quiet session ahead of ECB policy statement later in the week where the ECB will deliver its inflation forecasts and set the direction of the Euro. European bond yields rallied on signs of an improved global economy. The GBPUSD was under pressure through both the Asian and European sessions as Brexit was thrown a curve ball. We expect that the news will continue to put short term pressure on the Pound with a move down to 1.3020 on the cards. The AUDUSD drifted sideways with the lack of clear direction into shares for the session. Price found buyers around 0.7220 on Friday to move price sharply off the lows in line with the bounce into the Nasdaq. If tech shares continue to find pressure then expect the Aussie to retest the level. If bargain hunters come back in to support the Nasdaq tonight, then we expect to see a move up through 0.7290 drag in buyers. The USDJPY had a choppy session to flush out both minor highs and lows. Expect to see the pair continue to range ahead of the US session open tonight.
SPOT GOLD drifted lower in a thin market but lacked any real commitment from either buyers or sellers. The rally in the USD dragged on the action but price is showing signs of holding above 1925 which would lead to a push to 1940 in the short term. Crude Oil moved lower and held the lows after Saudi Arabia made the deepest monthly price cuts for supply to Asia in five months. Expect that the pressure will continue as demand obviously lags. Copper fought off a bearish move lower into the open of the European session to end back around Fridays highs. We expect to see a squeeze lower to clean out late buyers before any further move up as price is tentative up at the 3.0875 zone.
Cryptocurrencies again come under pressure as Bitcoin moved below the $10,000 once again. Bulls are definitely taking a breather for now as Bitcoin is currently trading at $10132.3 down 0.98%. EThereum is at $345.92 down 3.36% and Ripple is at $0.23910 down 0.82%.
The ASX200 swung between gains and losses yesterday as the market lacked direction with neither bulls nor bears wanting to commit to the action. The Index ended the day up 19.3 points to 5944.8 with the bulk of the gains in the Metals and Mining, Gold and Materials sectors.
The ASX200 is expected to open up 30 points thanks to a positive European session.
–
ECONOMIC DATA OUT TODAY (AEST)
JPY Current Account and GDP Data 9:50am
AUD NAB Business Confidence 11:30am
EUR German Trade Balance 4pm
EUR French Trade Balance 4:45pm
EUR Final Employment Change and GDP Data 7pm
–
SPI200 INTRADAY LEVELS TO WATCH
