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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 10/09/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures up 75 pts to 5935
- SP500 up 67.12 pts to 3398.96
- NASDAQ up 293.88 pts to 11,141.57
- Dow Jones up 439.58 pts to 27,940.47
- FTSE100 up 82.54 pts to 6012.84
- DAX30 up 268.88 pts to 13,237.21
- GOLD futures US session (Oct) up $11.80 to $1946.90 an ounce
- COPPER futures (Comex Dec) up $0.0293 to $3.0543 a pound
- OIL futures US Session (Nymex Oct) up $1.02 to $37.78 a barrel
- CRB Index up 1.08 pts to 147.08
- AUDUSD trading at 0.7280
- EURUSD trading at 1.1803
- GBPUSD trading at 1.2998
- USDJPY trading at 106.1800
- USD Index US Session (ICE Sept) down 0.186 to 93.255
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US indexes bounced back in a tech led rally as traders again took advantage of the pullback to jump in to Top Tech and end the short lived correction. The rally surprised many after the big correction off the highs and the move followed on from a surprisingly strong open in Europe. Risk was back on into a handful of shares namely Apple, Microsoft and Amazon each ending up over 3% while Tesla bounced back from the previous sessions beating to end up 10.92%. The mentality remains that tech is the go to place for yield and can weather any storm as traders brush aside vaccine concerns. The DOW closed back up 1.60% along with the broader SP500 which ended up 2.01% while the Nasdaq led the charge ending up 2.71% for the session. In Europe, major Indexes rallied from the open to bounce back from recent losses after a news report said ECB officials have become more confident in their outlook for the region’s recovery. Traders focus will now be on the ECBs statement later tonight which is not expected to change dramatically.
The USD Index slid lower from its recent highs to give up some gains as the Euro rallied to pressure the index. The dollar was also squeezed lower by a surprising bounce back into share markets from the European open. The Dollar took a hit into the US open as the NASDAQ showed signs of opening strong. The EURUSD rallied to squeeze out recent sellers after the report on the ECB economic outlook triggered stops on the move up. Expectations are now that the ECB statement will show that GDP will be revised higher and upcoming projections for output and inflation will show only slight changes to the June outlook. The GBPUSD also gained to rally off the lows as the dollar fell. The move on the key currencies is more a squaring up of positions ahead of the ECB announcement. The AUDUSD spent all day rallying to make back the losses from the previous session. The Aussie benefited from a rally into Crude oil early in the session and later from the share strength and USD weakness. The USDJPY rallied off lows as the risk off sentiment reversed on the European open and YEN safe haven buyers closed out positions. The dollar weakness helped to cap the rally but price is still looking heavy so any further share weakness may trigger safe haven YEN buyers back into action.
SPOT GOLD found strength from the USD weakness to push back up to the 1950 zone and get the bulls excited. For now support is holding at the 1910 zone and bringing in buyers but there still remains underlying pressure on the price action that may cap rallies for now. Crude Oil rallied from the European session open as share markets found strength. The bulls returned to push prices back up although the longer term downtrend remains in tact. A move back to 39.00 off current levels may be what is needed to put sellers back on the sidelines and support price. Copper bounced back as the share market rally gathered steam intraday. Price was also helped by the dollar move lower as buyers remain focused on weaker inventory levels for the metal and potential for increasing global demand if the recovery continues.
Cryptocurrencies managed to grind out some gains as buyers remain well contained for now. Bitcoin is currently trading at $10253 up 2.30% while Ethereum did better and is trading at $354.27 up 4.28% and Ripple is trading at $0.24041 up 2.40%.
The ASX200 was hit hard on the open yesterday and bulls remained cautious all session failing to lift price off the lows. In the end the index ended down 129.2 points to 5878.6 with all sectors coming under pressure. The Energy sector felt the brunt of selling ending down 4.68% while Financials followed next ending down 2.67%.
The ASX200 is expected to open up 80 points after a strong bounce in the US led the SPI200 higher.
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ECONOMIC DATA OUT TODAY (AEST)
AUD MI Inflation Expectations 11am
EUR Main Refinancing Rate and Monetary Policy Statement 9:45pm
EUR ECB Press Conference 10:30pm
USD PPI Data and Unemployment Claims 10:30pm
USD Final Wholesale Inventories 12am
USD Crude Oil Inventories 1am
CAD BOC Gov Macklem Speaks 2:30am
EUR ECB President Lagarde Speaks 3am
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SPI200 INTRADAY LEVELS TO WATCH
