–
OVERNIGHT MARKET SNAPSHOT FOR MONDAY 8/02/21
- SPI200 (Mar) overnight futures up 5 pts to 6778
- SP500 up 15.09 pts to 3886.83
- NASDAQ up 78.56 pts to 13,856.30
- Dow Jones up 92.38 pts to 31,148.24
- FTSE100 down 14.39 pts to 6489.33
- DAX30 down 3.57 pts to 14,056.72
- GOLD futures US session (Feb) up $22.10 to $1811.00 an ounce
- COPPER futures US session (Comex Mar) up $0.0870 to $3.6400 a pound
- OIL futures US Session (Nymex Mar) up $0.62 to $56.85 a barrel
- CRB Index up 1.15 pts to 181.39
- AUDUSD trading at 0.7678
- EURUSD trading at 1.2046
- GBPUSD trading at 1.3735
- USDJPY trading at 105.3900
- USD Index US Session (ICE Mar) down 0.582 to 90.968
–
US indexes ended the week on a high as the SP500 and Nasdaq pushed into new all time closing highs. Employment data came out a little less than expected although the unemployment rate dropped from 6.7% to 6.3% while job losses for December and November were revised higher than previously reported. Traders still saw the numbers as supportive for further stimulus as the jobs markets struggle under covid but are expecting that as people get vaccinated, jobs will come back. Democrats aim to push through Biden’s aid plan in coming weeks without Republicans support after approving a budget outline. Yields on longer term Bonds rose after the number on expectations for rise soon in inflation. The DOW closed up 0.30% while the broader SP500 ended up 0.39% and the Nasdaq closed up 0.57% for the session. In Europe, major Indexes edged lower as the export heavy DAX was weighed down by weak factory orders. Bond yields also climbed in Europe despite the negative tone to end the week. This supports the view of higher inflation and a steeper yield curve which may take the wind out of the share market rally soon.
The USD Index was hit down after the employment data release but was already coming under pressure through the Asian and European sessions as buyers locked in some gains and squared up some risk ahead of the number. It seems that many traders factored in a stronger number and quicker recovery and were forced back out of the action. The EURUSD did well on the back of the USD weakness as price moved straight up. Buyers were out in force to put the squeeze on recent sellers and rallied price into the US close. Price is now hovering up at some potential resistance around 1.2050 which may bring in some sellers but we suspect that there will still be some further weakness into the USD today to support the Euro. The GBPUSD added to the previous sessions gains after the BOE indicated that it would not take any step towards negative rates for 6 months if at all. The weakness into the USD sped up the Pound rally into resistance so we see the potential for some profit taking from buyers. The AUDUSD rallied hard after the US employment number and ramped straight back up off support. The bulls continue to look strong and keep the trend up in tact so we expect to see some love back into the resources sector today on the ASX. Price is extended but still has some sellers that may be nervous and set to exit on any sign of continued strength. The USDJPY was ramped up into resistance just to clean out some recent highs before the selling set in after the data release and set the USD in a downward spiral and pressure the pair lower. There is a lot of fuel to be squeezed out of the USDJPY after the recent rally so expect to see further pressure on buyers today from the open.
SPOT GOLD gave something for the bulls to cheer about as price was supported by the dollar weakness. Price moved back up and may be set to test the 1820 area from below. If sellers step back in to hold the level then a bigger move lower will be on the cards. If buyers manage to hold up off lows around 1784 then expect a move back up into the previous range above 1830. Crude Oil continue to plow higher on expectations for a recovery and as any serious pullback will be met with a cut in supply to buoy price. The momentum is up and being held at 56.60 in the near term. Copper benefited from the dollar weakness as recent sellers were kicked out of the action. Price rallied hard after breaking then holding the 3.5800 area and the move looks to be the start of another leg higher. Price is extended in the short term so we will be watching to see how pullbacks are supported by buyers.
Cryptocurrencies came under some pressure over the weekend after a good move up into the end of the week. The move looks to be a squeeze on buyers so we expect to see the majors find support again at higher levels. Bitcoin is currently trading at $38399.7 down 4.20% while Ethereum is at $1582.01 down 6.62% and Ripple is at $0.4211 down 4.88%.
The ASX200 started rallied hard from the open and held the gains into the close to end the week on a positive note. The index ended up 75 points or 1.11% to 6840.5 with the IT and Financials sectors leading the charge while Metals and Mining and Resources edged lower. Rising stocks outnumbered declining ones by 807 to 571 and 328 ended unchanged.
The ASX200 is expected to open up 5 points as the SPI200 hovered around resistance Friday giving up early gains into the US close.
–
ECONOMIC DATA OUT TODAY (AEDT)
JPY Bank Lending and Current Account 10:50am
EUR German Industrial Production 6pm
–
SPI200 INTRADAY LEVELS TO WATCH
