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OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 28/10/20 (as at 8:00am AEDT)
- SPI200 (Sept) overnight futures down 24 pts to 6020
- SP500 down 10.29 pts to 3390.68
- NASDAQ up 72.42 pts to 11,431.35
- Dow Jones down 222.19 pts to 27,463.19
- FTSE100 down 63.02 pts to 5728.99
- DAX30 down 113.61 pts to 12,063.57
- GOLD futures US session (Dec) up $4.30 to $1910.00 an ounce
- COPPER futures (Comex Dec) down $0.0017 to $3.0878 a pound
- OIL futures US Session (Nymex Dec) up $0.37 to $38.93 a barrel
- CRB Index up 1.32 pts to 150.71
- AUDUSD trading at 0.7119
- EURUSD trading at 1.1786
- GBPUSD trading at 1.3041
- USDJPY trading at 104.4300
- USD Index US Session (ICE Dec) down 0.014 to 93.030
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US indexes were mixed with the Nasdaq fighting back from the previous sessions weakness while the DOW and SP500 floundered. The DOW moved lower into the close while the broader SP500 was supported by tech to minimize the losses. Coming earnings this week for big tech helped support sentiment into the Nasdaq with Apple, Amazon, Google and Facebook due later in the week. Microsoft earnings came out after the bell and beat estimates so expectations are the other big boys will do the same. This would suggest that the Nasdaq will be supported for the next few days at least which in turn may hold the SP500 in tact. Apart from key tech stocks, Indexes remain on shaky ground as a surge in virus cases and lack of stimulus is weighing on the market. We expect that there will be stimulus at some stage, but due to the unknown of who will be leading the US in coming weeks, there is a risk off sentiment as traders are happy to lock in some gains and wait to see the outcome. The DOW closed down 0.80% while the broader SP500 ended down 0.30% and the Nasdaq closed up 0.64% for the session. In Europe, major Indexes were dominated by negative sentiment again as virus concerns and further restrictions weigh on markets. Key Indexes extended losses from the previous session as the risk to economies outweighed some better than expected earnings reports. Both the DAX and FTSE indexes have broken through key support zones which may trigger further selling pressure in coming days.
The USD Index continued to struggle to gain traction above the 93.00 zone as sellers kept the pressure on overnight and pushed prices lower. Still, the dollar remains focused on stimulus and will flounder until news comes out to trigger a direction either way. For now we expect continued chop and for price to remain in a tight range as traders reposition themselves for election volatility. The EURUSD is coming under pressure with price currently trading around the 1.1800 zone. A lower high is holding which will trigger some buyers to close out so looking for a move lower in the Asian session. The GBPUSD buyers performed as expected with price holding the 1.2995 area and pushing higher. Price action is weathering the dollar strength well compared to the Euro so we are watching for a minor higher low to hold and a move up through 1.3080. The AUDUSD remains choppy and lacking conviction either way. Traders may be in a holding pattern ahead of CPI data out today so we expect the range bound action between 0.7100 and 0.7144 to hold until then. The USDJPY moved lower as expected and looks set to continue the move down as price holds minor lower highs. Expect to see some buyers come in around current levels but we still see an extension lower through 104.350 is on the cards.
SPOT GOLD bulls are still trying to work out which way the precious metal wants to go and are hoping for a weaker USD. If the share market weakness starts to pic up steam then a safe haven bid into the USD will stamp out any notions of a rally into gold. For now the 1908 level continues to provide resistance as the dollar swings in a narrow range. Crude Oil was looking good early with a spike higher until price was hit hard just in the last hour. It seems that news of France considering a month long lockdown from midnight Thursday gave bulls a kick in the pants. Expect lower prices from here as news filters through the market. Copper also gave up earlier gains as price continues to be pressured from a rise in global covid cases. If price can not hold above the 3.0765 level then expect to see a move down to 3.0375 in the near term.
Cryptocurrencies managed to fight back from previous weakness and make back some losses to again show that bulls are looking to new highs. Bitcoin is currently trading at $13704.7 up 4.11% while Ethereum is at $405.55 up 3.64% and Ripple is at $0.25101 up 1.23%.
The ASX200 opened lower yesterday to follow on from a weak US session with the sellers piling on the pressure into the close. Buyers remained on the sidelines as the index ended down 104.6 points to 6051. All sectors ended in negative territory with IT, Energy and Resources being the hardest hit. Falling stocks outnumbered advancing ones by 1097 to 253 and 267 ended unchanged.
The ASX200 is expected to open down 25 points as the SPI200 continued to come under pressure overnight and closed down on the day sessions lows.
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ECONOMIC DATA OUT TODAY (AEST)
AUD CPI Data 11:30am
EUR German Import Prices 6pm
USD Goods Trade Balance and Prelim Wholesale Inventories 11:30pm
CAD BOC Rate Statement and Overnight Rate 1am
USD Crude Oil Inventories 1:30am
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SPI200 INTRADAY LEVELS TO WATCH
