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OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 2/12/20
- SPI200 (Sept) overnight futures up 37 pts to 6622
- SP500 up 40.54 pts to 3662.17
- NASDAQ up 156.37 pts to 12,355.11
- Dow Jones up 185.28 pts to 29,823.92
- FTSE100 up 118.54 pts to 6384.73
- DAX30 up 91.14 pts to 13,382.30
- GOLD futures US session (Dec) up $38.10 to $1813.80 an ounce
- COPPER futures (Comex Dec) up $0.0640 to $3.5020 a pound
- OIL futures US Session (Nymex Jan) down $0.78 to $44.56 a barrel
- CRB Index down 1.12 pts to 158.94
- AUDUSD trading at 0.7370
- EURUSD trading at 1.2069
- GBPUSD trading at 1.3426
- USDJPY trading at 104.3200
- USD Index US Session (ICE Dec) down 0.686 to 91.172
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US indexes had a strong session with the NASDAQ pushing up into new all time highs and dragging the broader market SP500 into new highs also. Great way to start the new month leaving traders expecting a Christmas rally into the end of the year. The positive sentiment was boosted by drugmakers seeking a quick approval for their vaccines and also by hopes for further stimulus. Europe could complete its assessment and approve a vaccine by late Dec or early Jan. Nancy Pelosi and Treasury Secretary Steven Mnuchin are set to reignite talks over a new stimulus deal to target aid for the unemployed and small business. Fed Chair Powell has already highlighted the need for small business support saying that many will not make it through the winter without any aid. The DOW closed up 0.63% while the broader SP500 ended up 1.12% and the Nasdaq closed up 1.28% for the session. In Europe, major Indexes also moved higher on vaccine and Brexit hopes. The DAX and FTSE are now making a charge also for new all time highs as bulls settle in and take up any slack in the market.
The USD Index bulls were beaten into submission ahead of the US open as price fell apart and went straight down through support. Talks of further stimulus reversed the previous sessions bullish action and sent price down through 91.500 leaving the door open for a bigger move down below 90.000 towards 88.000. The EURUSD took the weakness from the USD and smashed through recent highs around 1.2000. Price is extended but may not be a reason for the bulls to hold back as we look set on a daily basis for a move up towards 1.2400. The GBPUSD also spiked higher being supported by the dollar. Price has now moved well up into a potential daily resistance zone and a rally to the top end of the zone would see an extended move to 1.3500. Bullish sentiment was also supported by expectations that Brexit negotiations have entered the final stages and the two sides will meet the Dec deadline. The AUDUSD did not benefit, as much as other major pairs, from the weakness in the dollar and the risk on sentiment into share markets. Price struggled to move up off 0.7340 as there remained some selling pressure below 0.7372 as traders may be shying away from the Aussie as the interest rate differential narrows with the USD. The USDJPY held up well considering the pressure into the USD. This suggests depreciation in the YEN also to offset dollar weakness and buoy price. We may see the bears play catchup today and push the pair lower towards the 104.000 mark.
SPOT GOLD finally saw bulls fight back as selling pressure eased and the dollar fall supported the bullish action. Price managed to push back above the 1800 zone and may be building for a short squeeze higher. Crude Oil held resistance levels around 45.70 and fell to take out recent lows. OPEC and major producers delayed a decision on whether to ease production output from January until later in the week which triggered some recent buyers to lock in gains. Copper kept the party rolling and moved into new highs as bulls were supported by the dollar weakness and expectations for increasing demand once vaccines hit the market…expect that there will be some ‘buy the rumour sell the fact’ trading down the line.
Cryptocurrencies saw some heat come out of the recent bullish action and price move lower. Bitcoin is currently trading at $19013.5 down 2.22% while Ethereum is at $594.28 down 1.87% and Ripple is at $0.62074 down 4.68%.
The ASX200 opened weaker yesterday before buyers started the march higher to make back a lot of the lost ground from the previous session. Start of the new month shenanigans had the index ending the day up 70.7 points to 6588.5 with all sectors ending with gains. The charge was led by the Gold sector as investors went bargain hunting, while IT and Consumer Discretionary were not far behind. The RBA decided to leave interest rates on hold…as there really is little left to cut…leaving buyers to continue on their way higher. Rising stocks outnumbered declining ones by 730 to 521 and 372 ended unchanged.
The ASX200 is expected to open up 40/45 points to extend on yesterdays bullish action.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD RBA Gov Lowe Speaks 11am
AUD GDP 11:30am
EUR German Retail Sales 6pm
EUR PPI and Unemployment Rate 9pm
USD Non-Farm Employment Change 12:15am
USD Fed Chair Powell Testifies 2am
USD Beige Book 6am
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SPI200 INTRADAY LEVELS TO WATCH
