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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 12/11/20 (as at 8am AEDT)
- SPI200 (Sept) overnight futures up 26 pts to 6465
- SP500 up 27.24 pts to 3572.77
- NASDAQ up 232.58 pts to 11,786.43
- Dow Jones down 23.29 pts to 29,397.63
- FTSE100 up 85.25 pts to 6382.10
- DAX30 up 53.07 pts to 13,216.18
- GOLD futures US session (Dec) down $14.40 to $1862.00 an ounce
- COPPER futures (Comex Dec) down $0.0252 to $3.1303 a pound
- OIL futures US Session (Nymex Dec) up $0.18 to $41.54 a barrel
- CRB Index up 0.09 pts to 153.65
- AUDUSD trading at 0.7280
- EURUSD trading at 1.1780
- GBPUSD trading at 1.3215
- USDJPY trading at 105.4200
- USD Index US Session (ICE Dec) up 0.232 to 92.793
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US indexes reversed the previous sessions move with tech stocks fighting back to support the broader market SP500 while the DOW gave back some of the recent gains. Traders moved back into the stay at home stocks as restrictions tighten and covid cases surge in the US and they still see the benefit of really strong earnings into the sector. As more focus is put on the vaccine, expect to see some volatility and false starts. Many anticipate that we will continue to see a tug of war between the virus and the vaccine and between growth and cyclicals into the end of the year. On a side note, it seems that Pfizer’s CEO sold $5.6 million in stock on the same day of vaccine news…interesting to see how the market skeptics take the news although it was a pre-arranged sell down. The DOW closed down 0.08% while the broader SP500 ended up 0.77% and the Nasdaq closed up 2.01% for the session. In Europe, major Indexes moved higher to add to the rally from the previous session. Bulls were supported by comments from ECB President Lagarde that they will focus on more emergency bond purchases and cheap loans for banks to support the economy.
The USD Index again moved higher as traders continue to adjust positions to the vaccine news and higher interest rates and yields. Key support now comes in around 92.600 and expectations are for the move to continue higher in the near term. The EURUSD continued the move lower back through 1.1794 as expected on the back of the USD strength. Expect to see further downside and squeeze on buyers as the selloff holds this time. The GBPUSD also moved lower on the USD rally but remains above the 1.3170 zone in a medium term uptrend. If price continues to hold around current levels at 1.3200, expect that the positive sentiment into Brexit to bring in more buying support to hold a higher low. The AUDUSD remained choppy as a rally to 0.7317 late in the Asian session was given back into the US close as the dollar found strength. Support around 0.7260 continues to hold and we expect this choppy action to continue for now along with the swings into the share markets. The USDJPY edged higher on the dollar strength but lacked the conviction we would expect from a positive market. Sellers are stepping in around the 105.650 area and the risk still remains for some safe haven YEN buying and a move down, but for now the vaccine news continues to support the positive sentiment.
SPOT GOLD moved back into support to retest the recent lows as the rising dollar continues to put pressure on buyers. The risk is that the level can not hold and we see a break drag in more sellers. A move back to 1881 will be a good sign for bulls in the short term although we do not think that the USD rally will end anytime soon. Crude Oil extended the bullish move up through the 41.50 zone in the European session only to give back the gains as the USD rallied. Watching to see if the 41.50 can now hold and bring in buyers to confirm a higher low and another leg higher. Copper also gave up earlier gains as the dollar rallied and the DOW moved down on the open. Price did bounce off the 3.1050 zone to show some resistance from buyers to lower levels.
Cryptocurrencies pushed higher as the risk on environment continued into shares. Bitcoin is currently trading at $15772.5 up 3.12% while Ethereum had a good session and is trading at $465.79 up 3.77% and Ripple is at $0.25652 up 0.64%.
The ASX200 again opened strong yesterday but unlike the previous session, price managed to push higher and hold the gains into the close. The index ended up 109.2 points to 6449.7 with all sectors bar Gold ending with gains. The big movers were in the Energy then IT sectors while Telecom Services followed close behind. Rising stocks outnumbered declining ones by 761 to 515 and 311 ended unchanged.
The ASX200 is expected to open up only 10/15 points as the SPI200 gave back earlier gains into the US close.
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ECONOMIC DATA OUT TODAY (AEST)
EUR German Final CPI 6pm
GBP Prelim GDP, Industrial Production and Goods Trade Balance 6pm
GBP BOE Gov Bailey Speaks 7pm
USD CPI and Unemployment Claims 12:30pm
USD Crude Oil Inventories 3am
EUR ECB President Lagarde Speaks 3:45am
GBP BOE Gov Bailey Speaks 3:45am
USD Fed Chair Powell Speaks 3:45am
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SPI200 INTRADAY LEVELS TO WATCH
