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OVERNIGHT MARKET SNAPSHOT FOR FRIDAY 13/11/20 (as at 8am AEDT)
- SPI200 (Sept) overnight futures down 36 pts to 6394
- SP500 down 39.99 pts to 3532.67
- NASDAQ down 76.84 pts to 11,709.59
- Dow Jones down 317.46 pts to 29,080.17
- FTSE100 down 43.16 pts to 6338.94
- DAX30 down 163.23 pts to 13,052.95
- GOLD futures US session (Dec) up $12.80 to $1874.40 an ounce
- COPPER futures (Comex Dec) down $0.0012 to $3.1322 a pound
- OIL futures US Session (Nymex Dec) down $0.50 to $40.95 a barrel
- CRB Index down 0.63 pts to 153.01
- AUDUSD trading at 0.7231
- EURUSD trading at 1.1808
- GBPUSD trading at 1.3121
- USDJPY trading at 105.1100
- USD Index US Session (ICE Dec) down 0.071 to 92.953
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US indexes were weaker for the session as virus concerns reared its ugly head again on fears of further restrictions and for a follow on hit to employment and consumer spending. New York became the latest state to roll out stricter social distancing rules leaving investors to weigh up the timeline for a mass role out of the vaccine. It seems that the rate of new cases is outweighing the speed that a vaccine can be available. A lot of the companies that did well on the back of the vaccine news saw buyers exiting on fears they were too eager. New jobs data showed jobless claims fell but the pace of job recovery slowed which may take another hit as restrictions persist. Concerns are that consumers may start to tighten their belts and small businesses stop hiring which will drag on the economy. On a lighter note on the fickleness of traders, one analyst commented “It’s the classic between the market discounting something that is nine to 12 months out, and then ‘undiscounting’ it because it has not happened yet.” The DOW closed down 1.08% while the broader SP500 ended down 1.12% and the Nasdaq closed down 0.65% for the session. In Europe, major Indexes gave up some of the recent gains as buyers were tentative up near key resistance levels. Surging virus cases continue to take the wind out of the bulls sails and keep the rally in check. Concerns remain that if the numbers continue to increase and can not be contained, then further restrictions will stall the economic rebound.
The USD Index edged lower although is consolidating the recent gains and looks set for another leg higher. If price pushes up through 93.130 then expect that recent dollar sellers will come under pressure. There may also be some safe haven buying into the dollar on expectations that the US is heading to a grim winter for covid. The EURUSD pushed back above the 1.1793 zone as buyers remain stubborn. There continues to be uncertainty on stimulus which is causing mixed emotions into the USD and therefore the Euro. The key level is at 1.1830, which if it holds, will see another push lower if the dollar has another leg up. The GBPUSD was one way action lower as it seems that Brexit talks are set to drag on past yet another deadline. Recent buyers into the pair on the back of positive sentiment for a deal, were squeezed back out of the action. Support may come in around the 1.3100 whole number. The AUDUSD broke down through the support zone at 0.7260 as share markets came under pressure. We expect to see the move lower extend today as buyers are forced to unwind positions. The USDJPY edged lower off the 105.650 level as the YEN edged higher on the share market negativity. There is some room for a good move lower if 105.000 can not hold.
SPOT GOLD moved up off support around the 1860 area as the dollar remains the focus. If the dollar does find some more buyers then gold will take another run at support so we will be watching to see how buyers react this time around. On the flip side, a break up through 1885 may trigger some bulls into action for a deeper correction of the recent selloff. Crude Oil could not continue the push up off the 41.50 area as global demand continues to be a focus as long as covid is not under control. Price did initially find some buyers although this just turned out to be a flush of bulls prior to price heading south into the close of the US session as share fell. Copper was all sings and roundabouts again as buyers gave back all the gains plus more from an initial rally in the European session. Price did find an inside bid zone at 3.1225 where buyers were happy to support price so we are watching this area for signs that it will continue to hold.
Cryptocurrencies were mixed with Bitcoin edging higher while others found some weakness. Bitcoin is currently trading at $16059.5 up 1.54% while Ethereum is at $456.72 down 2.45% and Ripple is at $0.25335 down 1.64%.
The ASX200 started the session yesterday adding to the recent gains but then price faded and moved lower into the close. In the end the index finished down 31.5 points to 6418.2 with the Utilities, Gold and Metals and Mining sectors being the main drag on the action while IT and Telecom Services ended in the green. Rising stocks outnumbered declining ones by 643 to 633 and 335 ended unchanged.
The ASX200 is expected to open down 35 points as the SPI200 sells off into the close.
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ECONOMIC DATA OUT TODAY (AEDT)
EUR Buba President Weidmann Speaks 9pm
EUR Flash Employment Change, Flash GDP and Trade Balance 9pm
USD PPI Data 12:30am
GBP MPC Member Tenreyro Speaks 1am
USD Prelim Consumer Sentiment 2am
GBP BOE Gov Bailey Speaks 3am
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SPI200 INTRADAY LEVELS TO WATCH
