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OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 2/02/21 (as at 8am AEDT)
- SPI200 (Mar) overnight futures up 52 pts to 6639
- SP500 up 63.12 pts to 3777.36
- NASDAQ up 332.7 pts to 13,403.40
- Dow Jones up 229.29 pts to 30,211.91
- FTSE100 up 58.96 pts to 6466.42
- DAX30 up 189.15 pts to 13,622.02
- GOLD futures US session (Feb) up $13.20 to $1860.50 an ounce
- COPPER futures US session (Comex Mar) down $0.0070 to $3.5490 a pound
- OIL futures US Session (Nymex Mar) up $1.47 to $53.67 a barrel
- CRB Index up 3.03 pts to 177.23
- AUDUSD trading at 0.7622
- EURUSD trading at 1.2060
- GBPUSD trading at 1.3661
- USDJPY trading at 104.9500
- USD Index US Session (ICE Mar) up 0.490 to 91.025
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US indexes bounced back from Fridays weakness as the fear of a further unwind from hedge funds eased. The US followed on from the Asian and European markets to rally from the open and hold the momentum up into the close. The two stocks, GME and AMC, at the center of the shorting controversy took a hit with GME down around 30% while AMC gave up early gains. Big tech stocks were again the main goto trade as traders picked up ‘cheap’ Amazon and Alphabet shares ahead of earnings betting results will come out better than expected. The DOW closed up 0.76% while the broader SP500 ended up 1.70% and the Nasdaq closed up 2.55% for the session. In Europe, major Indexes jumped higher being supported by mining stocks as online retail traders turned their attention to silver and dragged miners along for the ride. Coronavirus numbers continued to weigh on the action and cap the bulls as concern increases for the economic damage caused from a new strain of the coronavirus and delays to vaccine roll-outs continue. Data showed German retail sales plunged far more than expected in December from choked consumer spending due to lockdown measures that will not ease anytime soon.
The USD Index rallied up through recent resistance as it had its own short squeeze off lows. Some sellers decided to cut positions after the US Treasury slashed it first quarter borrowing estimate due to a higher cash balance. Price pushed up through recent highs around 90.950 and looks set to continue the momentum up above the 91.000 level. We expect that the USD found some buyers on talk that Republicans are pushing back against the amount of stimulus. The EURUSD fell in proportion to the rally into the USD. Price held a lower high and pressed into recent lows around 1.2060 where we would expect to see a reaction from buyers. For now the trend remains down until the 1.2077 area breaks. The GBPUSD again moved lower off the 1.3745 area as recent buyers were squeezed back out of the action on the dollar rally. Price extended down into support around 1.3660 which will need to hold to fend off a bigger move lower. For now the key level holding the action down is at 1.3686. The AUDUSD did find a ‘risk on’ bid as share markets bounced back although bulls were weighed down by the move up in the dollar. Price pushed lower into the close but held above support so we will be watching to see signs of more bullish action into the Asian session and for price to hold and push up off the 0.7615 area. The USDJPY continued to add to the recent gains and move higher on the back of the dollar rally. Price consolidated the 104.650 area early before starting the push higher so we expect the bullish action to flow on into the Asian session.
SPOT GOLD edged its way higher getting some overflow from the Silver squeeze early. Price again struggled up around the 1870 area which does not look so good for bulls. We may see another unwind of buyers today as they realize that they may be on the wrong side of the action…especially if Silver continues to edge lower and look to fill the gap from yesterdays open. Crude Oil bulls won the day as price kicked off and spiked up into resistance around 53.80. Price still remains range bound for now being capped at 53.80 and supported at 51.75. Price is extended so we will watch to see if buyers can hold a higher level on a pullback which would suggest some longer term strength. Copper reacted to the dollar moves and tested down to support around 3.5230 before buyers lifted price back up into the close. Sellers continue to pressure price for now and hold lower levels so bulls will be watching the 3.5850 zone for a clean break to see if they can get the upside momentum kicked off again.
Cryptocurrencies were generally contained although Ripple took a beating after the extreme rally in yesterdays European session. Bitcoin is currently trading at $33797 up 2.74% while Ethereum is at $1334.23 up 1.79% and Ripple is at $0.41510 down 10.44%.
The ASX200 had another strange session but in the opposite direction from Friday’s selloff as price opened weak and then rallied from 11am into the close. Some of Fridays selloff may be attributed to Funds end of month rebalance and nerves ahead of the weekend leaving bargain hunters to lift prices back up today. At the close the index was up 55.6 points to 6663 which was a 140 point rally off the days lows (which was about the same move down off Fridays highs). Falling stocks outnumbered advancing ones by 820 to 604 and 308 ended unchanged.
The ASX200 is expected to open up 55 points as the SPI200 continued on with the days momentum up.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD RBA Statement and Cash Rate 2:30pm
EUR Prelim Flash GDP 9pm
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SPI200 INTRADAY LEVELS TO WATCH
