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OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 9/02/21 (as at 8am AEDT)
- SPI200 (Mar) overnight futures down 18 pts to 6792
- SP500 up 21.06 pts to 3907.89
- NASDAQ up 131.35 pts to 13,987.64
- Dow Jones up 237.52 pts to 31,385.76
- FTSE100 up 34.20 pts to 6523.53
- DAX30 up 3.19 pts to 14,059.91
- GOLD futures US session (Feb) up $19.20 to $1830.10 an ounce
- COPPER futures US session (Comex Mar) up $0.0505 to $3.6765 a pound
- OIL futures US Session (Nymex Mar) up $1.14 to $57.99 a barrel
- CRB Index up 2.16 pts to 183.55
- AUDUSD trading at 0.7705
- EURUSD trading at 1.2050
- GBPUSD trading at 1.3742
- USDJPY trading at 105.2200
- USD Index US Session (ICE Mar) down 0.020 to 90.948
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US indexes started the week with more gains as stimulus measures lift investor sentiment….that’s if the lofty prices have not already done so. Biden and his Democratic allies have cleared the way for a $1.9 trillion COVID relief package without having to worry about squabbling with Republicans. Treasury Secretary Yellen said on Sunday that the US will get back to full employment next year thanks to the stimulus…just keep that money flowing is all they need. The DOW closed up 0.76% while the broader SP500 ended up 0.54% and the Nasdaq closed up 0.95% for the session. In Europe, major Indexes ended the session in the green although gave up a lot of the gains into the close. Markets remain tentative up at highs even as stimulus Euphoria continues to take hold of the US. Investors were positive for a faster recovery and it is showing in the current ‘Merger and Activity’ (M&A) in the region after Japanese chipmaker Renesas Electronics Corp agreed to buy Frankfurt-listed chip designer Dialog Semiconductor. Cyclical sectors including basic resources, banks and chemicals rose between 0.8% and 2.2%.
The USD Index rallied in the Asian and European sessions only to find some renewed selling pressure from the US open. Price pushed back down to break the lows on stimulus news and looks set to continue lower in the Asian session today. We expect that price may find some support around the 90.800 area. If not, it will be a bigger move down which will support commodities for local stocks. The economic divergence narrative between the US economy and others, may continue to drive in buyers to the USD over the longer term so we may see another run up if support holds….its a fight between stimulus supply and a US economic recovery out pacing others. The EURUSD continues to trade in tandem with the USD but in the opposite direction as price made back early losses from the European session. We expect to see an extension to the run up potentially to the 1.2080 area. The GBPUSD continued to retest the resistance zone around 1.3745 after an early move lower. Price remains extended at this stage so we expect that the zone will hold….maybe a few flushes up through the level will be on the cards to test the sellers resolve. The AUDUSD extended on the previous sessions rally as bulls ramped price higher up through 0.7680. The Aussie still has room to move on the upside so we are watching for a solid Asian session and for bulls to potentially extend to 0.7750. The USDJPY moved lower on the USD weakness after sellers weathered some early pressure from bulls back up into resistance. Once the US opened for trade and the dollar moved lower, the USDJPY broke down through support around 105.335 and looks set to continue through 105.150 today if the USD edges lower.
SPOT GOLD found some love from buyers as the USD pushed lower and was also supported by expectations for higher inflation this year thanks to a massive stimulus boost. Price has pushed back up to the 1830 area after flushing out buyers below 1800. Expect to see more choppy action if the Dollar starts to gain back some lost ground. Crude Oil kept chugging higher holding minor higher lows as the dollar fell. Price is now well entrenched in an uptrend and looks destined for a move through 60 a barrel. Copper bulls kept the ‘pedal to the metal’ and held a higher low to push price up through resistance around 3.6375 as expected. Previous highs around 3.6835 may provide some selling pressure but we expect that bulls will be targeting highs around 3.7330.
Cryptocurrencies rallied on the back of a Bitcoin spike after Tesla Inc said it had invested around $1.5 billion in the cryptocurrency. In its annual report, Tesla said it may also invest in ‘certain alternative reserve assets including such as digital assets, gold, gold ETFs and other assets as specified in the future’. Bitcoin is currently trading at $44012.1 up 14.35% while Ethereum is at $1718.02 up 8.62% and Ripple is at $0.44936 up 6.85%.
The ASX200 continued to add to recent gains and got the new week off to a good start as the Index ended the day up 40.2 points to 6880.7. The Metals and Mining, Materials and Resources sectors led the push higher while Utilities ended down over 2%. We expect to see some more love into Resources today as commodities rallied overnight. Rising stocks outnumbered declining ones by 747 to 639 and 331 ended unchanged.
The ASX200 is expected to open down 10/15 points after the SPI200 backed off the days session highs. We do expect to see support come in and a potential rally into the close.
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ECONOMIC DATA OUT TODAY (AEDT)
JPY Average Cash Earnings 10:30am
AUD NAB Business Confidence 11:30am
EUR German Trade Balance 6pm
USD Jolts Job Openings 2am
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SPI200 INTRADAY LEVELS TO WATCH
