–
OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 8/12/20
- SPI200 (Dec) overnight futures down 10 pts to 6661
- SP500 down 8.64 pts to 3690.48
- NASDAQ up 55.71 pts to 12,519.95
- Dow Jones down 148.47 pts to 30,069.79
- FTSE100 up 5.16 pts to 6555.39
- DAX30 down 27.96 pts to 13,271.00
- GOLD futures US session (Dec) up $26.80 to $1862.70 an ounce
- COPPER futures US session (Comex Mar) down $0.0133 to $3.5112 a pound
- OIL futures US Session (Nymex Jan) down $0.53 to $45.73 a barrel
- CRB Index down 0.94 pts to 158.95
- AUDUSD trading at 0.7424
- EURUSD trading at 1.2114
- GBPUSD trading at 1.3382
- USDJPY trading at 104.0300
- USD Index US Session (ICE Dec) up 0.144 to 90.838
–
US indexes were mixed as focus goes onto the short term issues caused by covid-19 restrictions and ‘stay at home’ stocks rally. Big Tech stocks were the flavour of the session as the Nasdaq pushed into new all time highs again while Energy stocks were hit as California authorities compelled much of the state to close shop and stay at home. Some traders seem to be happy to lock in gains into the end of the year under short term pressures while 2021 looks brighter and is supported by vaccine hopes, a new stimulus package and more political stability. US-China worries also weighed on markets as news circulated that the US was preparing to impose sanctions on Chinese officials over their alleged role in Beijing’s disqualification of elected opposition legislators in Hong Kong. The DOW closed down 0.49% while the broader SP500 ended down 0.23% and the Nasdaq closed up 0.45% for the session. In Europe, major Indexes were generally weaker while the FTSE was flat being buoyed by weakness in the Pound. Brexit issues remain as negotiators struggled over key differences making it less likely that a deal will be done by the Dec 31 deadline.
The USD Index had a mixed session as price was initially supported through the Asian session and spiked to 91.240 before being hit lower on the open of European trade. The trend down remains in tact with focus on a stimulus package, but we may be seeing the start of rumblings from buyers that the amount of aid may not hit the mark and some risk being taken off the table for a move higher if the 90.650 holds. The EURUSD swung lower with the rally into the dollar before bouncing back to squeeze out some sellers. Price remains below the 1.1275 area so may see some more buyers happy to lock in gains especially as a no-deal Brexit looms. Buyers will need to hold price above the 1.2100 area to build for another leg up and they will be eyeing more stimulus from the ECB on Thursday. The GBPUSD took another hit on Brexit news and failure to come to an agreement. Sellers slammed price lower on the open for trade in the Asian session to move below the 1.3300 area and target stops as expected. Price did bounce back but expect that negative Brexit news will continue to weigh on the action. The AUDUSD was slammed down through the 0.7413 area as the dollar spiked but then rallied hard to take out recent highs. Buyers seem to be adamant that price should be higher so we see the move lower as a ‘flush’ and expect to see some support to come in above the 0.7400 area. The USDJPY was choppy as would be expected with the swings into the USD. Price held highs around 104.260 and then also support around 103.935. Expect that the indecisiveness will continue as bulls and bears fight it out. Major support is around 103.710.
SPOT GOLD found some weakness on the dollar rally but was quick move up and take out previous highs once the USD fell. Buyers managed to hold on to the gains which is a good sign for bulls that they may see a test of higher prices. Crude Oil showed some concern with the increasing number of virus cases and further restrictions as price tested lower levels. In saying that the longer term trend up remains in tact and the overnight action is simply a squeeze on late buyers to potentially build more support for a continued move up. Expect that a coming vaccine will provide support in the near term triggering buyers to soak up any dips. Copper also paused as the USD swung between highs and lows. Copper managed to fend off any major selling and hold above support around 3.4715. Price action does look like it is going through a profit taking phase so buyers will need to hold support if they are going to see higher prices and hold off a major correction lower.
Cryptocurrencies came under some minor selling pressure to move lower as recent buyers were squeezed out of the action and prices continue to go through a corrective phase. Bitcoin is currently trading at $19024.7 down 0.81% while Ethereum is at $585.54 down 1.66% and Ripple is at $0.60127 down 1.40%.
The ASX200 had a solid open yesterday only to see a bout of selling to push prices down well off the highs. A small rally into the close saw the index end the day up 40.9 points to 6675. The Metals and Mining, Resources and Materials sectors were leading the charge while Utilities were the biggest drag on the action. Rising stocks outnumbered declining onesby 677 to 616 and 351 ended unchanged.
The ASX200 is expected to open down 10 points as the SPI200 moved between support and resistance overnight and hold above the day sessions lows.
–
ECONOMIC DATA OUT TODAY (AEDT)
JPY Bank Lending, GDP Data and Current Account 10:50am
AUD NAB Business Confidence 11:30am
EUR Final Employment Change and GDP 9pm
EUR German ZEW Economic Sentiment 9pm
–
SPI200 INTRADAY LEVELS TO WATCH
