September 6, 2018
OVERNIGHT MARKET SNAPSHOT (7:15am AEST)-
Companies of interest reporting today on the ASX – ANQ, EFE, HRR, SIG, TTS, TSM.
US shares were lower with the tech sector being weighed down by political scrutiny into social media as they defend their companies against claims that they are “intentionally stifling the free exchange of ideas”. The DOW was up 22.51 pts or 0.09% while the broader SP500 was down 0.28% and the Nasdaq was down 1.19% as Twitter and Facebook were hammered. Canada and the US resume trade talks which buoyed the market although Trump is not positive on China which is keeping pressure on global shares. In Europe shares were hit lower again as emerging markets continue to come under fire and global trade concerns continue.
Data overnight showed that the US trade deficit with China increased which would mean only one thing….that the trade war will escalate as Trump imposes another $200 Billion of tariffs as the US pursues its America first policy.
The USD turned south as prices found selling pressure on minor profit taking from the recent rally. The EUR, AUD and the GBP were all higher on the back of USD weakness and mild profit taking from the previous selloff in USD denominated currencies.
Gold managed to bring back in some buyers on weakness in the USD and as buyers search for support. Copper also had a better night to close with gains on USD weakness and bargain hunting although the pressure remains with the Commodity Index lower and China issues still in play. Oil was lower as an expected Tropical Storm never materialized into a hurricane so not potentially affecting supply. Traders are also awaiting US Oil Inventories out tonight.
Cryptocurrencies have come under fire again as Bitcoin moves back below $7000 currently trading at $6952.5 down 5.97%. Ethereum is trading at $245.56 down 16.28% and Ripple is at $0.29406 down 13.12%.
Locally, we had a day to forget with the ASX200 falling 62.7 points at the close. Traders started the selling from the open and didn’t let up until the closing bell as trade war concerns with the US and China took centre stage weighing on commodity prices. GDP data pointed to growth but traders were not interested as resources propelled shares lower in a short term overcooked market. Declining stocks outnumbered rising ones by 787 to 428 and 358 ended unchanged.
The ASX200 is expected to open down 20/25 points after the SPI200 continued the move lower from the day into the European and US Sessions.
ECONOMIC DATA OUT TODAY (AEST) –
AUD Trade Balance 11:30am
EUR German Factory Orders 4pm
USD ADP Non-Farm Employment Change 10:15pm
USD Unemployment Claims 10:30pm
USD ISM Non-Manufacturing PMI 12am
USD FOMC Member Williams Speaks and Factory Orders 12am
USD Crude Oil Inventories 1am
SPI200 INTRADAY LEVELS TO WATCH –
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