OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 12/10/21
- SPI200 (Dec) overnight futures down 27 pts to 7237
- SP500 down 30.15 pts to 4361.19
- NASDAQ Composite down 93.34 pts to 14486.20
- Dow Jones down 250.19 pts to 34,496.06
- FTSE100 up 51.30 pts to 7146.85
- DAX30 down 6.99 pts to 15199.14
- GOLD futures US session (Dec) down $3.50 to $1753.90 an ounce
- COPPER futures US session (Comex Dec) up $0.0713 to $4.3468 a pound
- OIL futures US Session (Nymex Nov) up $1.11 to $80.46 a barrel
- CRB Index up 0.93 pts to 236.35
- AUDUSD trading at 0.7346
- EURUSD trading at 1.1552
- GBPUSD trading at 1.3591
- USDJPY trading at 113.3700
- USD Index US Session (ICE Dec) up 0.316 to 94.395
US indexes gave up opening gains to move lower into the close as traders prepare for earnings season. Continued supply chain issues and higher energy costs, as oil ticks higher, sees traders being cautious and fuelled some concern for third quarter earnings as higher energy feeds into rising costs for businesses and consumers. Earnings kick off with the banks from Wednesday and then ramp up next week. The Bond market was closed for Columbus Day holiday but traders will be watching the 10-year bond auction in tonights session. The DOW closed down 0.72% while the broader SP500 ended down 0.69% and the Nasdaq closed down 0.64% for the session. In Europe, major Indexes were supported by a strong rally in mining stocks to brush aside concerns for inflation. The Euro Bund continued lower as yields pushed higher which capped gains into the DAX while the FTSE savoured the rally into commodities on supply fears and rising costs of energy and raw materials.
The USD Index was buoyed through European and US trade as price edged higher. The price action continues to look constructive for higher prices as many traders expect that the supply chain issues and resilient inflation will push the Fed into a corner leading to tapering and interest rate rises making the USD more attractive. The EURUSD tried in vein to break higher and find a bid as Bund Yields rallied but had no luck. Price was pressured by the rally into the USD leading the Euro lower into the US close. Watching the Euro to pop and build a lower high below 1.1570 before getting pushed below 1.1540 as more sellers jump into the action. The GBPUSD was bid up early off 1.3610 as buyers tried to provide support at the level but the sellers were stronger and pushed price down to 1.3585 into the US close. The Pound remains focused on rate rises from the BOE so will be watching local jobs numbers tonight which may cap any further selling pressure today although the longer term action is heavy. The AUDUSD found little resistance from bears yesterday as price was ramped up and through 0.7320. Expecting that price may need to pullback to squeeze out some late buyers but the action is looking strong and set for continuation higher in coming sessions. The USDJPY was all one way action up as buyers took the bull by the horns and beat sellers into submission. Price extended on recent gains and if it wasn’t extended before, it certainly is now. In saying that bulls may be targeting the 114.50/60 area before taking a rest and locking in some gains.
SPOT GOLD continued to be held down in a choppy session as price was pressured by the USD rally. Buyers could not get price to hold above the 1760 area as sellers continue to provide resistance. For now, happy to watch and wait until the action works itself out and provides a clearer move either way. Aussie gold on the other hand was under pressure from the rise in the AUD and ended on session lows. Crude Oil was pushed into the 82 zone in European trade before finding some profit taking to move price back down into the US close. Still price continues the upward push on the back of energy concerns so I do not expect the rally to stop anytime soon. Copper added to Fridays gains and cleared the 4.2815 congestion zone to drag in buyers on higher demand expectations. Watching to see if price finds buyers on the pullback to hold another higher low and then target up to 4.4175 resistance.
Cryptocurrencies were mixed with Bitcoin continuing to find some buyers while others came under pressure and spiked lower into the US close. Bitcoin is currently trading at $57166.50 up 3.06% while Ethereum is at $3500.46 down 0.80% and Ripple is at $1.11602 down 4.85%.
The ASX200 started the session yesterday with an early selloff before the bulls woke up and fought back into the close. At the end of the day the Index was down 20.3 points to 7299.8 managing to bounce up off the days lows around 7249.8. The bulls seem to be making a stand on a daily basis continuing to defend 7180. Aussie 10-year bond yields are also rising and questioning the RBAs stance on lows rates.
The ASX200 is expected to open down 25 points after the SPI200 failed to push through resistance.
JPY Bank Lending and PPI 10:50am
AUD Business Confidence 11:30am
GBP Claimant Count and Unemployment Rate 5pm
EUR German ZEW Economic Sentiment 8pm
USD Jolts Jobs Openings 1am
USD FOMC Member Clarida Speaks 2:15am
USD 10-yr Bond Auction 4:01am
SPI200 INTRADAY LEVELS TO WATCH