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OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 3/02/21 (as at 8am AEDT)
- SPI200 (Mar) overnight futures up 59 pts to 6747
- SP500 up 62.43 pts to 3836.29
- NASDAQ up 209.38 pts to 13,612.78
- Dow Jones up 475.90 pts to 30,687.81
- FTSE100 up 50.23 pts to 6516.65
- DAX30 up 213.14 pts to 13,835.16
- GOLD futures US session (Feb) down $27.70 to $1833.10 an ounce
- COPPER futures US session (Comex Mar) down $0.0245 to $3.5215 a pound
- OIL futures US Session (Nymex Mar) up $1.23 to $54.81 a barrel
- CRB Index up 0.79 pts to 178.02
- AUDUSD trading at 0.7599
- EURUSD trading at 1.2037
- GBPUSD trading at 1.3660
- USDJPY trading at 105.0300
- USD Index US Session (ICE Mar) up 0.075 to 91.100
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US indexes rallied hard from the open to wipe off recent losses as the retail frenzy into GME and AMC took a big hit calming nerves for a hedge fund led selloff. Silver has also been a target for a short squeeze and was expected by many to rally hard although it is a different beast to a small cap stock and has proved to be resilient moving lower since Monday. Traders have now refocused back on stimulus and vaccine roll-outs as Democrats push Congress to fast track the relief package. Traders were also boosted again by tech stocks as Alphabet and Amazon were boosted ahead of earnings after market close. The DOW closed up 1.58% while the broader SP500 ended up 1.65% and the Nasdaq closed up 1.56% for the session. In Europe, major Indexes were also boosted on the open by the positive sentiment in the Asian session as traders brush aside recent fear of a ‘short squeeze’ induced meltdown. More upbeat numbers helped to support the mood for a faster recovery as as preliminary data showed the euro zone economy contracted by less than expected thanks to Germany and Spain managing slight expansions.
The USD Index rallied again to push up to resistance around 91.150. Price looks primed now to continue the squeeze on sellers to test higher levels which will in turn pressure dollar denominated currencies. For now the trend up is being held in tact around 90.875. Adding to the upside pressure is expectations that the US will weather the virus storm better and faster than Europe leading traders back into the dollar from Euro. The EURUSD again moved lower as traders unloaded long bets with a break below the 1.2077 area. Bears are now looking for an extension down into the 1.1915 area if current levels do not see any support from buyers. The GBPUSD also broke down over night due to the USD pressure as price fell below 1.3660 area triggering a wave of sell stops as buyers were forced to cover. If price retests the 1.3660 area and it holds as resistance, then we will be looking to lower levels in the near term and has the potential to really unwind down to 1.3300 over the longer term. The AUDUSD was also pressured lower but the risk on nature of the currency helped it find support around 0.7565 so the question now is whether it can hold the level for a reaction higher. Technically, if the level holds, price remains in an uptrend. The USDJPY continued to chug its way higher as price holds minor higher levels. Bulls will be targeting the next level of resistance up at 105.600.
SPOT GOLD took a hit as the USD rally was too much for bulls. The risk on sentiment also hit the safe haven nature of the precious metal as sellers held lower highs off 1870 through Asian trade and continued the push lower into 1830. Expect price to extend the move down into 1820 today to target stops below the level. Crude Oil built on the momentum from the Asian session and extended on the move up through 53.80. Price is primed to add to the gains as share markets look to move into new short term highs. Price as supported by supply cuts as major producers showed they were reining in output roughly in line with their commitments. Copper did not fair too well as price pushed deeper into the support zone around 3.5000/3.5325. Price will need to find some buyers soon for a spike higher to relieve some of the pressure and clear out some sellers to rebuild a base for a new leg up.
Cryptocurrencies generally did well being led higher by Ethereum and Bitcoin. Ethereum had a big move and pushed into new highs to support the positive sentiment. Bitcoin is currently trading at $35697.1 up 5.47% while Ethereum is at $1506.96 up 12.93% and Ripple lagged trading at $0.37008 down 10.83%.
The ASX200 followed on from where it left off Monday to rally from the open and keep the peddle to the metal into the close. In the end the index finished up 99.6 points to 6762.6 with all sectors bar Gold, ending with gains. The IT sector led the charge thanks to a strong showing from the NASDAQ in the US, being followed by Materials and Resources stocks. Rising stocks outnumbered declining ones by 814 to 546 and 325 ended unchanged.
The ASX200 is expected to open up 55 points as the US powered higher from the open to drag the SPI200 up with it.
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ECONOMIC DATA OUT TODAY (AEDT)
NZD Employment Change and Unemployment Rate 8:45am
AUD Building Approvals 11:30am
AUD RBA Gov Lowe Speaks 12:30pm
CNY Caixin Services PMI 12:45pm
EUR Final Services PMI 8pm
GBP Final Services PMI 8:30pm
USD ADP Non-Farm Employment Change 12:15am
USD ISM Services PMI 2am
USD Crude Oil Inventories 2:30am
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SPI200 INTRADAY LEVELS TO WATCH
