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OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 9/12/20
- SPI200 (Dec) overnight futures up 33 pts to 6721
- SP500 up 10.31 pts to 3702.27
- NASDAQ up 62.83 pts to 12,582.77
- Dow Jones up 104.09 pts to 30,173.88
- FTSE100 up 3.43 pts to 6558.82
- DAX30 up 7.49 pts to 13,278.49
- GOLD futures US session (Dec) up $8.00 to $1869.80 an ounce
- COPPER futures US session (Comex Mar) down $0.0148 to $3.5017 a pound
- OIL futures US Session (Nymex Jan) down $0.11 to $45.65 a barrel
- CRB Index down 0.67 pts to 158.28
- AUDUSD trading at 0.7409
- EURUSD trading at 1.2106
- GBPUSD trading at 1.3350
- USDJPY trading at 104.1600
- USD Index US Session (ICE Dec) up 0.166 to 90.955
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US indexes moved higher being supported by more positive vaccine news from Johnson & Johnson and Pfizer. Johnson & Johnson said that they could obtain late-stage trial results of a single dose vaccine earlier than expected and Pfizer cleared the next hurdle in the race to get its vaccine approved for emergency use. Bulls and bears continue to fight it out between near term problems with rising covid-19 cases and future positive news thanks to vaccines. Investors will be watching whether Congress will be able to come to an agreement on a relief bill with Friday seen as the deadline to avoid a government shutdown. Congress will vote on a one-week stopgap funding bill to provide more time to reach a deal on both spending and pandemic aid. For now, the action remains up as traders look past rising virus cases and add risk to the only place available…the share market. The DOW closed up 0.35% while the broader SP500 ended up 0.28% and the Nasdaq closed up 0.50% for the session. In Europe, major Indexes ended a choppy session with minor gains as prices were supported into the close on vaccine news which offset concerns for rising coronavirus cases in the region. Brexit talks continue to be a focus with many still expecting a deal after some positive news on how the Ireland-Northern Ireland border will be managed. This is separate to the wider trade talks but has been a point of contention for a while so many see that progress can now be made to clinch a deal by years end.
The USD Index had a relatively range bound session as price was held below 91.000 but also off recent lows. Traders will be awaiting news on stimulus and a relief package expected by the end of the week. The unknown will be the amount of aid as to whether bears are forced to lock in gains or not. The pressure over the longer term remains to the downside but the short term is up as risk is taken off the table. The EURUSD edged its way lower as some buyers squared up some risk. The action remains heavy off the 1.2174 highs as traders await the ECB and USD stimulus news. If we see more pressure on buyers to lock in gains, expect that a break of 1.2100 will lead to a move down to 1.2078 and then 1.2050. The GBPUSD was a bit of a mess with price whipping between support and resistance all session. Traders were triggered into action by Brexit news but are still undecided on whether there will be a deal or not so are being reactive to any news. Buyers are supporting price around 1.3300 while sellers are stepping in around 1.3380…in between is no mans land for now. The AUDUSD grinded its way lower after price failed up at highs around 0.7448. Price remains in a longer term uptrend but is pausing as traders take stock with no direction or lead from the USD. As long as share indexes are supported, expect that the Aussie will remain a risk on trade and move higher….unless the dollar spikes higher on negative stimulus news. The USDJPY edged higher in tune with the USD. Price lacked any conviction either way so expect the indecisiveness to continue until news on US triggers some volatility.
SPOT GOLD also edged higher as late comers to the run up supported the action. Price found sellers up at previous highs around 1875 to cap the action although minor higher lows are still holding. Price may be at a short term make or break level. If bulls can push price convincingly through 1875, then we may see more buyers triggered into action and sellers forced out of the market. A move down through 1860 may confirm the longer term down trend and open the door for a retest of lows. Crude Oil was choppy as buyers held price up off the 45.15 area twice and ended the session up near highs. Bulls were supported late by the vaccine news although were happy to hold off from adding more risk in the uncertain near term environment. Copper traded in similar fashion to Oil with a retest of support around 3.4695 before price pushed up to close on session highs. If the support zone holds, then expect to see bulls continue the trend higher although a break below will lead to an unwind of some longer term holders.
Cryptocurrencies continued to edge lower as recent buyers were squeeze out of the action. Bitcoin is currently trading at $18810.6 down 0.82% while Ethereum is at $571.03 down 2.81% and Ripple is at $0.57497 down 4.01%.
The ASX200 had a positive session yesterday but struggled to get back above the 6700 level to test Mondays highs. In the end the index still closed the day up 12.7 points to 6687.7. The Gold sector bounced back from a few days of red to lead the market higher with Consumer Staples not far behind. The Energy sector gave up some recent gains while Materials and Resources took a breather. Falling stocks outnumbered advancing ones by 680 to 593 and 373 ended unchanged.
The ASX200 is expected to open up 30 points as the SPI200 closes above resistance on another positive US session.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD Westpac Consumer Sentiment 10:30am
CNY CPI and PPI Data 12:30pm
EUR German Trade Balance 6pm
CAD BOC Rate Statement and Overnight Rate 2am
USD Final Wholesales Inventories 2am
USD Crude Oil Inventories 2:30am
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SPI200 INTRADAY LEVELS TO WATCH
