–
OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 24/11/20 (as at 8am AEDT)
- SPI200 (Sept) overnight futures up 25 pts to 6586
- SP500 up 23.95 pts to 3581.49
- NASDAQ up 25.66 pts to 11,880.63
- Dow Jones up 327.79 pts to 29,591.27
- FTSE100 down 17.61 pts to 6333.84
- DAX30 down 10.28 pts to 13,126.97
- GOLD futures US session (Dec) down $38.50 to $1833.90 an ounce
- COPPER futures (Comex Dec) down $0.0298 to $3.2612 a pound
- OIL futures US Session (Nymex Jan) up $0.48 to $42.90 a barrel
- CRB Index up 1.16 pts to 157.33
- AUDUSD trading at 0.7286
- EURUSD trading at 1.1839
- GBPUSD trading at 1.3322
- USDJPY trading at 104.5800
- USD Index US Session (ICE Dec) up 0.133 to 92.528
–
US indexes got off to a good start to the session after manufacturing data came in a lot better than expected and more positive vaccine news hit the newswires. AstraZeneca said that its vaccine could be about 90% effective and it will prepare to submit data to authorities around the world that have a framework for conditional or early approval. The news overshadowed the lingering threat to growth from business shutdowns so traders are continuing to balance some negative news with a longer term positive outlook…and for now the longer term view is winning. The NASDAQ took some heat as some of the megacaps came under pressure as traders rotated out of the lockdown stocks and into the energy, financial and Industrial sectors. The DOW closed up 1.12% while the broader SP500 ended up 0.67% and the Nasdaq closed up 0.22% for the session. In Europe, major Indexes moved lower as the positive vaccine news was outweighed by rising virus cases. There is now a significant chance of continuing lockdown measures through December as the second wave isn’t under control yet. This would mean that economic output will continue to be depressed before any pickup down the track.
The USD Index rallied hard on the US open after the positive manufacturing data was released and had traders re-assessing their stimulus views. Bulls were also supported by further vaccine news as they lifted price off support to take out recent lower highs. The move puts more emphasis on a decent base of support so we see a further squeeze on sellers and run up on the cards in the near term. The EURUSD did pop its head up through resistance at 1.1890 early before being hit lower on the back of the dollar spike. Price took out support at 1.1820 so the question is now whether a lower high will hold and squeeze out more buyers on a run lower to 1.1760 lows and potentially further. The GBPUSD was also knocked off its perch as the dollar rallied. The move did clean out some buyers although the trend up remains in tact. If there is more upside pressure into the dollar then the trend may change quickly. We will be watching to see if rallies are capped and whether sellers start to enter the action below highs around 1.3380. The AUDUSD popped up above the 0.7330 zone to trap some buyers before being smacked about 60 pips lower. The move down has cleaned out a lot of buyers so we will be watching to see if a lower high builds which will lead to further selling or whether buyers can manage to build support up off 0.7260 lows. The USDJPY came to life and spiked hard as the dollar rallied. There was no sign of safe haven YEN buyers as share markets moved up. Price may start to charge from here and clear out recent sellers with a move up to 105.600 resistance.
SPOT GOLD bulls will now be firmly depressed as price took out major support at 1850. We have been watching this level for a while and see the potential for an extended move lower if the dollar continues to rally. The action is held down at 1877/80 but is extended so may dray in some bargain hunters for a short term pop. Crude Oil weathered the dollar rally well as price held and built some support at 42.60. Price early rallied hard through 42.60 before the dollar spiked but then held the retest which is a positive sign for higher prices ahead of the OPEC meeting next week. Copper was under pressure through the European session and then the selloff accelerated with the dollar move up. Price did recover well into the close although buyers may remain on the sidelines in the near term as price moves down off key resistance levels.
Cryptocurrencies were generally higher across the board while Bitcoin lagged and saw some heat come out of the recent rally. Bitcoin is currently trading at $18371.1 down 1% while Ethereum is at $595.13 up 4.73% and Ripple is at $0.54591 up a whopping 14.55%.
The ASX200 lacked any enthusiasm from buyers yesterday as some of the early gains were given back into the close. At the end of the day the index ended up only 22.4 points to 6561.6 after a promising start with gains in the Energy sector, Resources and Metals and Mining supporting the action. Rising stocks outnumbered declining ones by 713 to 548 and 352 ended unchanged.
The ASX200 is expected to open up 30 points as SPI200 rallies on more positive vaccine news.
–
ECONOMIC DATA OUT TODAY (AEDT)
AUD RBA Deputy Gov Debelle Speaks 1:30pm
EUR German Final GDP 6pm
GBP MPC Member Haskel Speaks 10:30pm
USD Consumer Confidence 2am
NZD RBNZ Financial Stability Report 7am
–
SPI200 INTRADAY LEVELS TO WATCH
