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OVERNIGHT MARKET SNAPSHOT FOR MONDAY 21/09/20
- SPI200 (Sept) overnight futures down 36 pts to 5836
- SP500 down 37.54 pts to 3319.47
- NASDAQ down 117.00 pts to 10,793.28
- Dow Jones down 244.56 pts to 27,657.42
- FTSE100 down 42.87 pts to 6007.05
- DAX30 down 91.87 pts to 13,116.25
- GOLD futures US session (Oct) up $7.10 to $1948.40 an ounce
- COPPER futures (Comex Dec) up $0.0360 to $3.1070 a pound
- OIL futures US Session (Nymex Oct) up $0.14 to $41.11 a barrel
- CRB Index up 0.76 pts to 151.54
- AUDUSD trading at 0.7289
- EURUSD trading at 1.1840
- GBPUSD trading at 1.2917
- USDJPY trading at 104.5700
- USD Index US Session (ICE Dec) up 0.049 to 93.018
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US indexes continued lower into the weekend as big tech led the markets lower. A large options player which some market watchers call the “Nasdaq whale” unwound bets on several technology-related companies to influence market sentiment. The NASDAQ reversed earlier gains and broke down below previous lows to drag in further sellers which we expect may see some continuation tonight. Rising coronavirus cases in Europe is spooking the market and is touted to be the biggest threat to the euro zone economy by many analysts who say that growth and inflation are more likely to cause negative surprises in the near future. Tensions between the US and China are increasing as Trumps administration bans TikTok from US app stores which will not be good for market sentiment. The lack of progress in stimulus negotiations continues to weigh on the market and we expect to see further negative headlines weigh on the action. The DOW closed down 0.88% along with the broader SP500 ending down 1.12% and the Nasdaq continued down another 1.07% for the session. In Europe, major Indexes were dragged lower by travel related stocks and also banks and rekindled fears for the spread of the virus impact trader sentiment.
The USD Index was pretty much range bound for the session and held up off support around 92.80 into the close. Traders may be nervous ahead of the US elections and showing concern over US/China relations which may see some safe haven buying into the dollar as long as there is a lack of further stimulus. The EURUSD continues to mirror the USD and found weakness into the close as the USD rallied. Price is starting to respect a new move lower so if price breaks down through 1.1825 then expect to see a push to the 1.1760 zone again. The GBPUSD moved lower as Britain recently discussed negative rates and signaled it was considering a second national lockdown as infections soared in London and northern England. A further rally into the USD will trigger a wave of selling into the Pound, with the current backdrop, and see the currency pair start to push to new lows. The AUDUSD is seeing some selling pressure as share Indexes come under pressure and the USD gains. The commodity currency may be preparing for further upside pressure into the USD and therefore a move down to break the 0.7656 lows. The USDJPY continues to push higher against the USD as safe haven buyers get active into the currency on virus concerns. Price remains in a well established downtrend held down around 104.850.
SPOT GOLD saw a mixed session as price action gave up early gains into the close as the dollar moved up. Price washed out some sellers before moving down to pressure buyers and end slightly higher from where it started the day Friday. We expect that recent buyers may start to get nervous and forced to close as price starts to test down to the 1945 area today. Crude Oil saw the supply driven rally stall and price hold lower highs into the 41.50 area. Weak demand continues to plague the commodity as oil refineries worldwide start to cut fuel production. Expecting to see a squeeze on the recent action and move lower off highs. Copper rally continues as price spikes up through recent highs around 3.0910 on expectations that the economic recovery in China will continue to keep supplies weak.
Cryptocurrencies were relatively unchanged Friday and over the weekend as buyers ran into selling pressure to cap any gains. Bitcoin is currently trading at $10845.6 down 1.91% while Ethereum is at $367.08 down 4.77% and Ripple is at $0.24431 down 2.66%.
The ASX200 gave up early gains to end down for the session as losses in financials outweighed gains in mining stocks and Victorias hopes for an early return from lockdown may have been dashed. The index ended down 18.7 points to 5864.5 at the close as rising stocks outnumbered declining ones by 710 to 544 and 364 ended unchanged.
The ASX200 is expected to open down 30 points after the US was sold lower into the weekend.
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ECONOMIC DATA OUT TODAY (AEST)
JPY Bank Holiday
EUR German Buba Monthly Report Tentative
USD Fed Chair Powell Speaks 12am
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SPI200 INTRADAY LEVELS TO WATCH
