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OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 15/09/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures down 13 pts to 5893
- SP500 up 42.57 pts to 3383.54
- NASDAQ up 203.11 pts to 11,056.65
- Dow Jones up 327.69 pts to 27,993.33
- FTSE100 down 5.84 pts to 6026.25
- DAX30 down 9.18 pts to 13,193.66
- GOLD futures US session (Oct) up $16.70 to $1956.20 an ounce
- COPPER futures (Comex Dec) up $0.0250 to $3.0645 a pound
- OIL futures US Session (Nymex Oct) down $0.07 to $37.26 a barrel
- CRB Index up 0.09 pts to 146.50
- AUDUSD trading at 0.7292
- EURUSD trading at 1.1867
- GBPUSD trading at 1.2847
- USDJPY trading at 105.7100
- USD Index US Session (ICE Dec) down 0.255 to 93.083
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US indexes were ramped higher on the back of positive vaccine news and a flurry of Merger and Acquisition news. The rally in the US followed on from a positive Asian and European session where buyers jumped into the action on the opens. It does not seem like there was a major move to support another new trend higher but rather that buyers are feeling more positive and bored of sitting on the sidelines. Drugmaker AstraZeneca resumed its British clinical trials of its COVID-19 vaccine, one of the most advanced in development. The vaccine news is not a game changer but was enough to get some buyers to add risk to the markets. Traders love news on a vaccine as it is the ultimate solution to the pandemic so news outlets love to pump the stories. The M&A activity helped support Indexes but can be associated with market highs as confidence is high and borrowing low making raising capital easier. The DOW closed up 1.18% along with the broader SP500 which ended up 1.27% and the Nasdaq led the charge ending up 1.87% for the session. In Europe, major Indexes were also supportive although the DAX index gave up all of the gains from the open to end in negative territory. The Eurostoxx50 Index also lacked the strength giving up gains made on the open to drift lower all session. Still, the key Indexes are holding above recent higher lows.
The USD Index edged lower during the positive risk on mood into major share markets. The action was all one way until the US session opened and buyers started to step into the action. Price remains around the 93.00 mark and expect that it will continue to do so ahead of the Federal Reserve’s last policy meeting before the Nov 3rd US elections. The EURUSD edged higher being supported by the USD. Price remains locked in a range to oscillate around the 1.1850 area. The GBPUSD was bought up off lows during the Asian and European session only to give back some of the gains once the USD started to rally. Price action still has some work to do to build a base for a good rally although Brexit concerns continue to hang over the currency pair and weigh down the action. The AUDUSD remains choppy but was supported by the initial move down in the dollar. Price remains capped by sellers above the 0.7300 level so for higher prices, we will need to see a clear break and hold of the level along with clear weakness into the USD. The USDJPY eventually cracked under the pressure of the USD move lower but did manage to stem the tide of selling once the USD found a low. If price holds around the current lows then we expect to see an extension to the move down to the 105.300 area.
SPOT GOLD worked its way up off support around the 1940 area as the dollar found weakness. If price can hold above the 1950 area then we expect bulls to get more active and run prices higher as long as the dollar edges lower. Crude Oil had a very lackluster session to trade in a narrow range. Price did manage to hover above the 37.00 level but did not put any pressure on recent sellers as new buyers remained on the sidelines. Copper traded in tandem with the moves into the USD. Price was supported on dips as supply issues remain the focus of bulls. As long as the USD does not rally hard, we expect to see the bullish theme continue and minor dips continue to be supported.
Cryptocurrencies were stronger as buyers jumped in to lift prices across the board. Bitcoin is currently trading at $10676.2 up 3.40% while Ethereum is at $375.44 up 3.04% and Ripple is lagging at $0.24591 up 1.70%. Watching Bitcoin now to be supportive of a bigger move higher.
The ASX200 started the week with some gains as miners boosted the index. The best performers were in the Gold sector followed closely by Metals and Miners and Resource stocks. The index closed up 40.1 points to 5899.5. BNPL shares continued to come under pressure as traders locked away gains. Buying was supported right from the open and may have been attributed to the start of the move out of lockdown for Victoria.
The ASX200 is expected to open down 10/15 points after being locked in a narrow range overnight with both bulls and bears both lacking conviction.
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ECONOMIC DATA OUT TODAY (AEST)
AUD Monetary Policy Meeting Minutes 11:30am
CNY Industrial Production, Retail Sales and Unemployment Rate 12pm
GBP Claimant Count Change and Unemployment Rate 4pm
EUR ZEW Economic Sentiment and German ZEW Economic Sentiment 7pm
USD Empire State Manufacturing Index and Import Prices 10:30pm
USD Industrial Production 11:15am
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SPI200 INTRADAY LEVELS TO WATCH
