–
OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 15/10/20 (as at 7:45am AEDT)
- SPI200 (Sept) overnight futures down 15 pts to 6146
- SP500 down 23.26 pts to 3488.67
- NASDAQ down 95.17 pts to 11,768.73
- Dow Jones down 165.81 pts to 28,514.00
- FTSE100 down 34.65 pts to 5935.06
- DAX30 up 9.07 pts to 13,028.06
- GOLD futures US session (Dec) up $10.40 to $1905.0 an ounce
- COPPER futures (Comex Dec) up $0.0073 to $3.0518 a pound
- OIL futures US Session (Nymex Nov) up $0.90 to $41.10 a barrel
- CRB Index up 1.13 pts to 151.51
- AUDUSD trading at 0.7161
- EURUSD trading at 1.1746
- GBPUSD trading at 1.3013
- USDJPY trading at 105.1300
- USD Index US Session (ICE Dec) down 0.118 to 93.418
–
US indexes moved lower after traders did not take kindly to Mnuchin comments on stimulus. He said that he does not expect something to be done prior to elections considering the divide between the two sides and the level of detail involved. Markets were weighed down by losses in Amazon and Microsoft as the Nasdaq backed off from recent highs. Expectations are that stimulus is largely baked into price at current levels so any negative comments will trigger some profit taking into shares. Bank of America and Wells Fargo fell hard after disappointing earnings and mixed guidance for the economy going forward especially on the loan book as many industries remain vulnerable. The DOW again closed down 0.58% while the broader SP500 ended down 0.66% and the Nasdaq closed down 0.80% for the session. In Europe, major Indexes moved lower on the ‘second wave’ fears for Covid. With no new stimulus news to lean on for the bulls, buyers were happy to take the opportunity to lock in some recent gains. The hope of stimulus has helped European shares track gains in global equities, but with new lockdowns on the horizon and vaccine delays, sentiment has been hit. Also dampening the mood for the session is Brexit uncertainty.
The USD Index edged lower off the highs as expected to give some respite to Gold and major FX pairs. Mnuchin’s comments triggered some buying into the dollar although we expect that there may be another squeeze lower if the 93.40 level holds. The EURUSD did see some buyers step into the action on the dollar weakness but not until after the usual flush and run from traders. The Euro does look weaker longer term but in the short term expect to see a spike higher if the dollar has another leg down. The GBPUSD kicked higher mainly thanks to an extension in Brexit talks. Price was under pressure early in the European session before rallying hard to clean out sellers and spike to recent highs around 1.3060. We may see some heat come out of the move up and buyers lock in some gains through the Asian session if the 1.3033 level holds. The AUDUSD seems like it wants to hold and build support around the 0.7160 area although lower highs are still holding. Employment data out today may change the tone though and a move down through 0.7150 will trigger some sellers into action longer term. The USDJPY moved down with the dollar weakness and is now sitting right on some support around 105.050. We may see a flush of the level today but will be looking for a spike high after a flush to pressure recent sellers. If the dollar does have another leg down then and USDJPY rally may be short lived.
SPOT GOLD bounced back off the 1888 zone to squeeze out some recent sellers on the USD swing lower. Price remains sensitive to the dollar and in a longer term contractive phase with both lower highs and higher lows holding. If the dollar does move down then gold bulls will be back into the action for a push up to the 1920 area. Crude Oil managed to rally in the European session as the $40 zone held. Price was helped by the USD movement and now looks set to test up to the 41.50 area. Inventories out tonight may cap the bullish action up at highs if they come out more than expected. Copper was a little messy with the weakness in the USD not providing much support. This may suggest that another leg down is on the cards for the bears. A break below 3.0375 may trigger a push down to the 3.0145 zone.
Cryptocurrencies were contained for the session with prices hovering just below previous session levels after getting hit lower across the board on the US open. Bitcoin is currently trading at $11357.1 down 0.34% while Ethereum is at $375.17 down 1.21% and Ripple is at $0.24802 down 2.71%.
The ASX200 had an uneventful session yesterday as price was range bound from the open. Price opened weaker and held the losses into the close with the index ending down 16.5 points to 6179.2 to hold below the important 6200 level. Losses in the Industrials, Financials and Telecom Services sectors held the action down. Falling stocks outnumbered advancing ones by 633 to 603 and 372 ended unchanged.
The ASX200 is expected to open down 10 points after the SPI200 moved down from the day sessions close. Traders will be waiting for the jobs numbers at 11:30am prior to any serious move either way.
–
ECONOMIC DATA OUT TODAY (AEST)
AUD RBA Gov Lowe Speaks 8:45am
AUD Employment Change and Unemployment Rate 11:30am
CNY CPI and PPI 12:30pm
EUR EU Economic Summit All Day
USD Philly Fed Manufacturing Index and Unemployment Claims 11:30pm
USD Crude Oil Inventories 2am
EUR ECB President Lagarde Speaks 3am
–
SPI200 INTRADAY LEVELS TO WATCH
