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OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 13/10/20 (as at 7:45am AEDT)
- SPI200 (Sept) overnight futures up 48 pts to 6161
- SP500 up 57.09 pts to 3534.22
- NASDAQ up 296.32 pts to 11,876.26
- Dow Jones up 250.62 pts to 28,837.52
- FTSE100 down 15.27 pts to 6001.38
- DAX30 up 87.18 pts to 13,138.41
- GOLD futures US session (Dec) up $1.20 to $1927.40 an ounce
- COPPER futures (Comex Dec) down $0.0198 to $3.0627 a pound
- OIL futures US Session (Nymex Nov) down $1.08 to $39.52 a barrel
- CRB Index down 1.93 pts to 149.80
- AUDUSD trading at 0.7210
- EURUSD trading at 1.1816
- GBPUSD trading at 1.3064
- USDJPY trading at 105.3400
- USD Index US Session (ICE Dec) up 0.008 to 93.073
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US indexes were supported again by a charge higher in the NASDAQ as the big boys surged ahead of earnings. Facebook ended up 4.3% while Amazon was up 4.75% and Apple rocketed higher ending up 6.37% ahead of an event where they are expected to release the latest iPhones. The idea of further stimulus has the market leaders flying again as traders will now be looking to bank earnings this week. Analysts expect a 21% drop in SP500 companies from a year earlier but it is smaller than the 31% slump for the second quarter and as the bar was set so low, expect that any ‘beat’ will be supportive for price….especially considering the current bullish sentiment. Tech names again dragged the SP500 higher which is now within striking distance of new all time highs. The risk on push into elections continues as polls suggest a Biden victory who may be better for global trade (taking out uncertainty) although Trump is seen as a ‘stock market friendly’ president. Many expect Biden to raise taxes which will be negative for shares at elevated levels so this may be a last ditched effort for new highs from bulls. The DOW closed up 0.88% while the broader SP500 ended up 1.64% and the Nasdaq closed up 2.56% for the session. In Europe, major Indexes generally ended higher although the FTSE index lagged to end slightly lower. Traders are being buoyed by optimism for a stable recovery in China and hopes for more stimulus. The same theme is expected to continue to support the action into US elections and offset concerns….if any…on surging virus cases across Europe.
The USD Index again moved lower on the expectations for some form of stimulus soon whether a stripped down version or not. Price is hovering above he 93.00 area which is expected to break in the short term on a momentum push lower. The EURUSD continues to look supportive of another move higher as higher lows hold on dollar weakness. Expect the push to 1.1875 highs soon. The GBPUSD tested back into the 1.1300 area before pushing higher off the zone into the US close. Like the Euro, the USD remains the key driver for the move up so watch for more dollar weakness to extend the move up in the Pound. The AUDUSD struggled to gain traction all day and moved lower off 0.7235 but still holds above the 0.7200 area. The weakness was attributed to the PBOC (Peoples Bank Of China) changing reserve requirements for banks which weakened the Yuan. The USDJPY continued its march lower on USD weakness and from some buying into the YEN after BOJ Governor Kuroda stressed his readiness to take additional monetary easing steps. Price pushed down through the 105.500 level so we may see a retest of the zone prior to further downside. If the minor level holds at 105.366. then expect a direct push to 105.050 lows.
SPOT GOLD cleaned out some buyers on a contractive move lower off 1932 highs. Price action is retesting the 1918 zone but expect to see another move higher to 1938 especially if the USD falls below 93.00. Crude Oil was hit lower nearly 3% as traders expect to see more supply hit the markets after a force majeure at Libya’s largest oilfield was lifted, a Norwegian strike affecting production ended and US producers began restoring output after Hurricane Delta. Price is down on a potential bid zone where we may expect to see a reaction from buyers to support price. Copper was again rejected on a test of highs and price faded lower into the US close even as the USD fell. This shows the difficulty bulls are having to push price up through resistance so we may see a pullback and squeeze of some buyers in the near term.
Cryptocurrencies were stronger along with the risk on sentiment into the share market. Bitcoin is currently trading at $11569.9 up 1.99% while Ethereum is at $387.96 up 3.69% and Ripple is trading at $0.25612 up 0.45%.
The ASX200 had a late push yesterday afternoon to move up out of the days range and end up 29.8 points to 6132. Bulls will now be targeting 6200 where they may find some resistance. The IT sector was the star performer and that was followed by Gold and Financials. Rising stocks outnumbered declining ones by 746 to 500 and 361 ended unchanged.
The ASX200 is expected to open up 45 points after the SPI200 was lifted to new minor highs in the US session. Expect the ASX to test the 6200 level today.
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ECONOMIC DATA OUT TODAY (AEST)
CNY Trade Balance Tentative
EUR German Final CPI Data 5pm
GBP Claimant Count Change and Unemployment Rate 5pm
EUR ZEW Economic Sentiment 8pm
USD CPI Data 11:30pm
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SPI200 INTRADAY LEVELS TO WATCH
