–
OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 29/09/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures up 38 pts to 5982
- SP500 up 53.14 pts to 3351.60
- NASDAQ up 203.97 pts to 11,117.53
- Dow Jones up 410.10 pts to 27,584.06
- FTSE100 up 85.26 pts to 5927.93
- DAX30 up 401.67 pts to 12,870.87
- GOLD futures US session (Oct) up $19.20 to $1877.00 an ounce
- COPPER futures (Comex Dec) up $0.0303 to $3.0013 a pound
- OIL futures US Session (Nymex Nov) up $0.32 to $40.57 a barrel
- CRB Index up 0.37 pts to 148.73
- AUDUSD trading at 0.7072
- EURUSD trading at 1.1665
- GBPUSD trading at 1.2837
- USDJPY trading at 105.5100
- USD Index US Session (ICE Dec) down 0.382 to 94.300
–
US indexes kicked off the new trading week with a bang as bulls ramped major indexes higher right from the open in a broad based rally. Big Tech such as Apple and Amazon once again gave the biggest boost to the SP500 although energy names did well as traders went in search of bargains. As the end of the month and end of US Financial Year approaches, we expect that some of the move up was due to portfolio re-balancing and adding allocations to equities. Talk of further stimulus supported the positive sentiment although we do not think that much will happen before elections but it is the ‘idea’ that talks are moving in the right direction that is important to investors. Even though the bulls were out to play, volume on major exchanges was light compared to the average for the previous 20 days. The DOW closed up another 1.51% while the broader SP500 ended up 1.61% and the Nasdaq closed up 1.87% for the session. In Europe, major Indexes also ramped up from the open being supported by a strong bounce in the banking sector. The sector has recently been under pressure but rallied 5.6% for the session. The DAX index surged 3.2% for the session being helped by positive data for Chinas industrial companies.
The USD Index moved lower which helped to take some steam out of the recent rally and saw traders go risk on back into the share markets. Although the dollar has fallen off a two month high, we expect that traders will remain on the defensive ahead of elections and thanks to continued virus concerns which will help support the safe haven dollar buying. The EURUSD bounced off Asian session lows as the USD moved down. Price pushed back to the recent lower high around 1.1680 so the trend down remains in tact for now. The GBPUSD put the squeeze on recent sellers as expected, to charge higher on the open of European trade. The move up was based on hopes that Britain could still secure a Brexit deal with the EU. The AUDUSD did not seem as positive as other major pairs as the run higher remained capped around 0.7074. The level may be broken today during the Asian session although an extended move up will co-incide with a breakdown into the USD which may not be likely until Europe opens for trade. The USDJPY backed away from highs as the USD faded into the close. Expect that a bounce back into the USD will see the USDJPY break up through 105.700 highs.
SPOT GOLD gave some hope to bulls as a rally was supported by the weakness into the USD. Price btroke up through 1875 which triggered some stops to squeeze out some recent sellers and also drag in bulls. The positive move does not mean that the lows are in place as there is a lot of shorts into the USD that could be the fuel for another run higher which will in turn pressure Gold lower. Crude Oil did well overnight to end with some gains mainly due to the weakness into the USD. Price is now trading around resistance at 40.60 which will drag in sellers on any bounce up into the USD. Copper did rally although the move up is a lot less convincing than previous pushes from the bulls. This may indicate that buyers are running out of steam or they are not convinced that the pullback into the USD will go a lot further. If that is the case, then watch for a break down through 2.9660 to trigger some more weakness into the commodity.
Cryptocurrencies were generally higher along with the risk on tone into shares. Bitcoin is currently trading at $10857.1 up 1.24% while Ethereum is at $362.27 up 2.50% and Ripple is at $0.24446 up 1.14%.
The ASX200 had a pretty uneventful session yesterday after finish last week on a high. Price action spent most of the session swinging between gains and losses and ended down 12.6 points to 5952.3. The sectors were mixed with IT performing the best being followed by Gold while Consumer Staples were the biggest drag on the action. Rising stocks outnumbered declining ones by 801 to 444 and 361 ended unchanged.
The ASX200 is expected to open up 40 points as the SPI200 moved up overnight thanks to the US kicking off the week with a strong move higher.
–
ECONOMIC DATA OUT TODAY (AEST)
JPY Tokyo Core CPI 9:30am
EUR German Prelim CPI All Day
USD Goods Trade Balance and Wholesale Inventories 10:30pm
USD Consumer Confidence 12am
–
SPI200 INTRADAY LEVELS TO WATCH
