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OVERNIGHT MARKET SNAPSHOT FOR FRIDAY 11/09/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures down 79 pts to 5830
- SP500 down 59.77 pts to 3339.19
- NASDAQ down 221.97 pts to 10,919.59
- Dow Jones down 405.89 pts to 27,534.58
- FTSE100 down 9.52 pts to 6003.32
- DAX30 down 28.32 pts to 13,208.89
- GOLD futures US session (Oct) down $0.60 to $1946.20 an ounce
- COPPER futures (Comex Dec) down $0.0778 to $2.9737 a pound
- OIL futures US Session (Nymex Oct) down $1.05 to $37.00 a barrel
- CRB Index down 0.90 pts to 146.17
- AUDUSD trading at 0.7257
- EURUSD trading at 1.1821
- GBPUSD trading at 1.2803
- USDJPY trading at 106.1400
- USD Index US Session (ICE Sept) up 0.127 to 93.385
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US indexes gave back the gains from the previous session to end lower as the NASDAQ starts to show cracks. US weekly jobless claims out prior to the US open showed that the labour market recovery is slowing and weighed on traders sentiment. The NASDAQ opened slightly higher but was quick to give up the gains with sellers stepping in and pressuring prices lower all session into the close. Big Tech again led the charge early before the selling pressure widened to other high flying tech stocks. Buyers are now showing caution as expectations for another tech led bounce may be off the cards as jobless numbers remain elevated. Data also showed that a few large bullish options positions were partially unwound into Facebook, Adobe and Netflix which shows the concern of a bigger tech related correction is increasing. The DOW closed back down 1.45% along with the broader SP500 which ended down 1.76% while the Nasdaq ended down 1.99% for the session. In Europe, major Indexes were relatively flat until the US open when sellers entered the market. The damage was limited into Europe due to the early close but we expect to see a weak open later tonight as traders play catchup. The ECB kept its policy rates unchanged and said its existing stimulus measures were sufficient and likely to be used in full. The release capped the bullish action into shares as the Euro rallied. ECB President Christine Lagarde said the central bank is carefully watching the implications of a strong euro and expectations for further stimulus is increasing. Traders believe that the neutral stance has more to do with the reduced effectiveness of the remaining options at the ECBs disposal rather than being comfortable with the current state of the economy which does not bode well for shares.
The USD Index was initially under pressure until safe haven buyers jumped into the action as major US indexes moved lower. There will be more USD upside pressure to come if the NASDAQ slide continues into the weekend. The EURUSD saw some choppy action as the USD swung between gains and losses. The ECB announcement did little to move the currency as the news was already factored into price. The big move came on the back of the US jobless news which shows the continued dependence for direction on the dollar. The GBPUSD continued to be weighed down by fears that Brexit may fall apart. The Pound was hit hard in one way traffic lower not finding any support from the initial fall into the USD. For now, traders are not happy holding Pound so we may see further downside if Brexit continues to be under threat. The AUDUSD initially tried to make a move higher but was quick to reverse and squeeze out buyers as US stock indexes fell. Expect that AUD weakness will be the short term theme if the share market continues lower and Dollar rallies. The USDJPY did rally thanks to the USD strength but the bullish action was capped as the safe haven YEN rallied also. With a lack of USD momentum and until the share market gives signs of a serious direction, USDJPY may remain in a range for now.
SPOT GOLD rallied early in the European session as the USD spiked lower and got the bulls excited. Unfortunately the USD was quick to recover once the US opened and the NASDAQ moved lower which triggered sellers back into gold and erased gains. Expect to see more of the same if the tech selloff gains momentum. Crude Oil fell again being pressured by the rise in the USD and as US stockpiles surprisingly moved higher adding to increasing supply concerns. This is at a time when many are starting to factor in a fall in global oil demand so expect to see further pressure on the cards in the near term. Copper was hit hard in a choppy session being swung by the movements into the USD. Bulls once again tried to move price higher but ran into a wall of sellers once the US opened and share markets fell over. Concern for a slowdown is starting to creep into Copper prices which has been relatively strong but it is still early days yet.
Cryptocurrencies were mixed overnight with the best performer being Ethereum which gained while others floundered. Bitcoin is currently trading at $10309.1 up 0.52% while Ethereum is at $364.54 up 2.98% and Ripple is at $0.24193 up 0.71%.
The ASX200 opened strong yesterday after the positive US session but bulls could not hold onto the gains and price faded all day until a late rally into the close. The index ended the session well off the highs up 29.9 points to 5908.5. The biggest gains were made in the Gold sector which were followed by IT and Metals and Mining.
The ASX200 is expected to open down 75 points as the SPI200 continues the move lower into key support.
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ECONOMIC DATA OUT TODAY (AEST)
JPY PPI Data 9:50pm
EUR German Final CPI 4pm
GBP GDP, Goods Trade Balance and Industrial Production 4pm
EUR German Buba President Weidmann Speaks 6pm
EUR Eurogroup Meetings All Day
USD CPI Data 10:30pm
USD Federal Budget Balance 4am
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SPI200 INTRADAY LEVELS TO WATCH
