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OVERNIGHT MARKET SNAPSHOT FOR FRIDAY 30/10/20 (as at 8:00am AEDT)
- SPI200 (Sept) overnight futures up 36 pts to 5972
- SP500 up 39.08 pts to 3310.11
- NASDAQ up 180.73 pts to 11,185.59
- Dow Jones up 139.16 pts to 26,659.11
- FTSE100 down 1.05 pts to 5581.75
- DAX30 up 37.56 pts to 11,598.07
- GOLD futures US session (Dec) down $11.30 to $1867.90 an ounce
- COPPER futures (Comex Dec) down $0.0060 to $3.0580 a pound
- OIL futures US Session (Nymex Dec) down $1.28 to $36.11 a barrel
- CRB Index down 1.85 pts to 144.81
- AUDUSD trading at 0.7029
- EURUSD trading at 1.1673
- GBPUSD trading at 1.2925
- USDJPY trading at 104.6300
- USD Index US Session (ICE Dec) up 0.546 to 93.955
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US index bulls were rescued into the close by a rally into big tech. After such a big move lower the previous session, traders were out supporting big tech from the open ahead of earnings later after the bell. Apple, Google and Amazon all rallied from the open in anticipation of earnings out-performance (released after the close and all beat estimates) while Facebook and Twitter also had a big session to collectively support the broader index. Sentiment was also supported by data showing the US economy grew at a record pace in the third quarter thanks to the government pouring more than $3 trillion of pandemic aid into the economy. The DOW closed up 0.52% while the broader SP500 ended up 1.19% and the Nasdaq closed up 1.64% for the session. In Europe, major Indexes found some bargain hunters to provide support for the FTSE and DAX after the ECB left its ultra-easy policy unchanged and hinted at more support to come in December. They have resisted the move to add more stimulus so far, which the markets have not taken too kindly to, so the news is a bit of a welcome relief for bulls. The question is now whether the ECB can give the market what it wants/needs to support the economy through the latest hit from the pandemic.
The USD Index rallied again to spike up through the 94.00 area before settling just below the level. The move up started early in the European session due to the ECB talking up the need for further aid and pressuring the Euro lower. Later, buyers were supported by the GDP and unemployment data as traders reposition and assess further stimulus. The EURUSD fell hard on the ECB release to drop through key support at 1.1695. Expect that the stimulus news will keep the pressure on the Euro in the near term with the potential for continuation through 1.1608 daily lows. The GBPUSD also moved lower to take out support around 1.2912 before a bounce ended price back above the level. Watching now to see if we get further support into the pair to lift price up off support. The AUDUSD also fell under the pressure of the USD. Price took out lows around 0.7010 but, like the pound, ended back above the zone. If the USD sees a retracement to squeeze out some buyers, then expect the Aussie to rally off support. The USDJPY was a confused pair during the European and US sessions as both buyers and sellers had a good run. Price moved down hard as it looked like the USD was going to fall before turning sharply to rally even harder back up through session highs on dollar strength. Our expectations are now for support to hold and a higher low to build for a run up.
SPOT GOLD took another hit as the USD rallied although the move down was not as savage as the previous session. Buyers stepped into the action at a previous bid zone around 1860 to hold price up off the lows into the close of the US as share markets rallied. The lower high at 1884 is holding the action down for now so there is still a chance that price can head lower, especially if the USD continues to rally. Crude Oil took another body shot to move down through support around 36.50. Bears flooded the market on the open of European trade to spike prices lower although buyers did manage to engineer a bounce into the US close as share markets rallied. The pressure of rising covid cases and global demand remains the key focus which we do not expect to change in the near term opening up a test down to 34.00. Copper managed to react up off the previous sessions lows which is a previous bid zone into the commodity. Buyers were happy to support price around the level even as the USD continued the squeeze higher. From here, price will need to hold a higher low and build a base if we are to see a run at the highs.
Cryptocurrencies moved higher finding support with the late rally into the US share market. Bitcoin is currently trading at $13489.4 up 2.36% while Ethereum is at $389.79 up 1.05% and Ripple lagged and is at $0.24398 down 0.31%.
The ASX200 opened down yesterday and never recovered as buyers remained on the sidelines and it was only the brave who went bargain hunting. The index ended the day down 97.4 points to 5960.3 with all sectors ending in the red. The Gold sector was the worst hit while Energy and Resources were not far behind. Falling stocks outnumbered advancing ones by 1005 to 329 and 275 ended unchanged.
The ASX200 is expected to open up 40 points after the SPI200 followed the major indexes higher into the close of the US session so expect the resolve of sellers to be tested on the open and some bargain hunters to jump into the action.
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ECONOMIC DATA OUT TODAY (AEST)
JPY CPI and Unemployment Rate Data 10:30am
JPY Prelim Industrial Production 10:50am
AUD PPI Data 11:30am
EUR German Prelim GDP and Retail Sales 6pm
EUR CPI Data, GDP data and Unemployment Rate 9pm
CAD GDP 11:30pm
USD Personal Spending and Personal Income 11:30pm
USD Consumer Sentiment 1am
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SPI200 INTRADAY LEVELS TO WATCH
