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OVERNIGHT MARKET SNAPSHOT FOR MONDAY 7/12/20
- SPI200 (Sept) overnight futures up 42 pts to 6682
- SP500 up 32.40 pts to 3699.12
- NASDAQ up 87.05 pts to 12,464.23
- Dow Jones up 248.74 pts to 30,218.26
- FTSE100 up 59.96 pts to 6550.23
- DAX30 up 46.10 pts to 13,298.96
- GOLD futures US session (Dec) up $0.90 to $1837.70 an ounce
- COPPER futures US session (Comex Mar) up $0.0340 to $3.5245 a pound
- OIL futures US Session (Nymex Jan) up $0.62 to $46.26 a barrel
- CRB Index up 0.58 pts to 159.89
- AUDUSD trading at 0.7425
- EURUSD trading at 1.2121
- GBPUSD trading at 1.3440
- USDJPY trading at 104.1700
- USD Index US Session (ICE Dec) up 0.079 to 90.797
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All three major US indexes made new all time high closes as bulls took charge all session right from the open. Some disappointing jobs numbers helped to strengthen expectations for further fiscal stimulus as the number of new jobs came in less than anticipated to support the idea that the labour market is losing steam. The DOW closed up 0.83% while the broader SP500 ended up 0.88% and the Nasdaq closed up 0.70% for the session. In Europe, major Indexes ended with some gains with the FTSE finally pushing up through key resistance. Buyers were supported by the energy sector as oil stocks lifted. German factory orders rose more than expected raising hopes the manufacturing sector in Europe’s biggest economy started the fourth quarter on a solid footing. More Brexit negotiations over the weekend may be a negative for the Pound to start the week after British negotiators say they are prepared to leave without a deal and have been preparing for such a scenario a while now.
The USD Index was supported off the previous sessions lows into the US employment data and finally found some buyers to squeeze out sellers and rally slightly into the close. The move up may have been in response to some weakness in the Euro and Pound although there is still focus on an aid package after the jobs data missed the mark for many. The EURUSD finally found some selling pressure mid European session after price took out recent highs at 1.2175 to trap some buyers before starting the move down. Price was already under pressure before the rally into the Dollar and this may be due largely to stalling Brexit talks. If price can not hold above 1.2100 then we may see a decent correction as buyers get squeezed out of the action. The GBPUSD took a hit just after flushing out recent highs through 1.3500 as Britain and the EU paused Brexit talks on Friday after failing to narrow differences sufficiently to reach a trade agreement. In saying that, this could be negotiating tactics from Britain (taking a leaf out of Trumps book) so it would not take much of a headline to trigger buyers back into action. If price does break below 1.3412, then we may see more stops triggered and price move lower in the short term. The AUDUSD was moving lower through the Asian and European sessions up until the US employment data came out and buyers started to support US indexes. The pullback may have been your typical retest of a breakout point before continuation higher so the 0.7413 level will be important today. If it holds, then expect more buyers to support a move into new highs through 0.7450. The USDJPY moved along side the rally into the USD to make back some of the losses into the close of the previous session. If the 104.070 level holds then we expect to see a further squeeze on sellers and move up to test higher levels.
SPOT GOLD spent the Asian and European sessions moving sideways as buyers were reluctant to add to positions ahead of the US employment data. Once the USD started to rally, Gold came under pressure to move lower although buyers did step in later in the session to move price back up into the close. There is short term resistance at 1844 and if this holds and price pushes down through 1830, then expect a test towards major lows and a squeeze on buyers….will depend on the USD action today. Crude Oil moved up through 46.25 highs as expected before a pullback and retest of the 45.70 breakout zone. Expect to see higher levels as the buyers soaked up the selling pressure after OPEC agreed to a compromise between OPEC+ members to continue to increase output slightly but also continue to keep the bulk of the supply cuts in place. Copper also looks set for higher prices as buyers held higher levels Friday. Expect that a push up through 3.5300 today will drag in more bulls for another leg higher into European trade.
Cryptocurrencies are consolidating as buyers continue to happily soak up any selling pressure. Bitcoin is currently trading at $19186.4 up 0.70% while Ethereum is at $595.78 up 0.68% and Ripple is at $0.61380 up 5.33%.
The ASX200 continued on with the previous few days momentum on Friday to end the week on a positive note. At the close the index was up 18.8 points to 6634.1 as buyers gave up a few points into the close. The gains were supported by the Financial, Energy and Resources sectors while Gold took another hit. Rising stocks outnumbered declining ones by 681 to 589 and 357 ended unchanged.
The ASX200 is expected to open up 40 points as the SPI200 continued on its march higher into the US close Saturday morning.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD ANZ Job Adverts 11:30am
CNY Trade Balance Data Tentative
EUR German Industrial Production 6pm
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SPI200 INTRADAY LEVELS TO WATCH
