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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 8/10/20 (as at 7:50am AEDT)
- SPI200 (Sept) overnight futures up 25 pts to 6045
- SP500 up 58.49 pts to 3419.44
- NASDAQ up 209.99 pts to 11,364.60
- Dow Jones up 530.70 pts to 28,303.46
- FTSE100 down 3.69 pts to 5946.25
- DAX30 up 22.55 pts to 12,928.57
- GOLD futures US session (Dec) down $18.30 to $1890.50 an ounce
- COPPER futures (Comex Dec) up $0.0665 to $3.0300 a pound
- OIL futures US Session (Nymex Nov) down $0.63 to $40.04 a barrel
- CRB Index up 0.06 pts to 149.56
- AUDUSD trading at 0.7139
- EURUSD trading at 1.1765
- GBPUSD trading at 1.2919
- USDJPY trading at 105.9700
- USD Index US Session (ICE Dec) down 0.074 to 93.670
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US indexes were again driven by its addiction to stimulus to recover from Trumps shock tweet and rally on hopes that there will be an incremental approach to stimulus. The news comes just after the Trump tweet of halting negotiations until after the elections. In a very calculated approach from Trump he relented to an extent in yesterdays Asian session as markets were under pressure, to say he backed a more piecemeal approach to delivering aid. The bulls then came out to jump back into the action as traders focus is well and truly on stimulus to support the markets into elections. US Bond prices fell with yields rallying as markets took comfort that at least some stimulus measures were still on the table. The DOW closed back up 1.91% while the broader SP500 ended up 1.74% and the Nasdaq closed up 1.88% for the session. In Europe, major Indexes were mixed as the FTSE struggled up at previous highs with continued concerns of Brexit weighing on the action. The DAX was more upbeat and rallied once the US opened for trade and went higher.
The USD Index came under pressure as sellers pressured price lower on Stimulus hopes. The dollar index is continuing to hold a lower high and is set to make a push down to the 93.40 low….as long as Trump can remain off twitter with any more negative comments on Stimulus. The EURUSD is showing signs that it will hold a lower high in the short term which would suggest the USD may find some buying. If the 1.1750 zone holds as support then expect shorts to get squeezed for a run up. The GBPUSD was choppy but did find a support zone around 1.2860 as the USD fell. If the level can hold, expect to see a run to 1.2990 highs. The AUDUSD bounced back from lows around 0.7100 but ran into sellers around 0.7140 area. Price was supported by the risk on tone into shares but may need to clean out some buyers and reset above 0.7100 for another leg higher. The USDJPY spiked up through resistance at 105.750. It seems that traders are factoring in a Biden victory and potentially a clean sweep for the Democrats which would lead to greater stimulus. This makes sense as the move up was risk off into the YEN.
SPOT GOLD did not see the strength we would have expected on the weakness into the USD. Price does look set to break up through 1890 fro a run to 1900 and above so watching now for an entry as long as the USD continues to show weakness. Crude Oil lagged the bullish sentiment after US inventories came out a lot more than expected to renew concerns over demand for the commodity. Still, with the continued bullish sentiment into the share market, oil is holding and building a higher low. As long as stimulus keeps pumping into the market, the USD will be weak and support Oil. Copper saw one way action higher as the USD came under pressure on Trump stimulus comments. Price found some resistance at previous highs around 3.0500 so we may see some heat come out of the extended move. If the weakness continues into the USD then expect price to reset for another charge higher…barring any surprise tweets.
Cryptocurrencies managed to make back some of the losses from the selloff on stimulus news the previous session. Bitcoin is currently trading at $ 10654.9 up 1.00% while Ethereum is at $341.10 up 0.17% and Ripple was strong and is at $0.24869 up 1.75%.
The ASX200 bulls were happy with the Budget yesterday and it showed in the buying pressure as the action was all one way right from the open. The Index ended the day up 74.3 points to 6036.4 with the Financial sector leading the charge being followed by Consumer Discretionary then Consumer Staples. Rising stocks outnumbered declining ones by 723 to 515 and 355 ended unchanged.
The ASX200 is expected to open up 20 points as the SPI200 continued to add to the gains from the day session.
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ECONOMIC DATA OUT TODAY (AEST)
JPY Current Account 10:50am
CNY Caixin Services PMI 12:45am
EUR German Trade Balance 5pm
GBP BOE Gov Bailey Speaks 6:25pm
EUR ECB Monetary Policy Meeting Accounts 10:30pm
CAD BOC Gov Macklem Speaks 11:30pm
USD Unemployment Claims 11:30pm
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SPI200 INTRADAY LEVELS TO WATCH
