OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 30/11/21 (as at 8am AEDT)
- SPI200 (Dec) overnight futures up 41 pts to 7255
- SP500 up 60.65 pts to 4655.27
- NASDAQ Composite up 291.18 pts to 15782.84
- Dow Jones up 236.60 pts to 35135.94
- FTSE100 up 65.92 pts to 7109.95
- DAX30 up 23.82 pts to 15280.86
- GOLD futures US session (Dec) down $4.20 to $1781.30 an ounce
- COPPER futures US session (Comex Dec) up $0.0588 to $4.3498 a pound
- OIL futures US Session (Nymex Jan) up $1.53 to $69.68 a barrel
- CRB Index down 1.01 pts to 225.72
- AUDUSD trading at 0.7133
- EURUSD trading at 1.1281
- GBPUSD trading at 1.3305
- USDJPY trading at 113.6500
- USD Index US Session (ICE Dec) up 0.156 to 96.260
US indexes were lifted by tech bargain hunters as the Nasdaq made back all the losses plus some. The Nasdaq opened up and rallied from the open to push above Wednesdays session highs brushing aside the selloff and lifting the broader market SP500. The DOW lagged being weighed down by Banks as traders await more news on the Omicron variant. Interest rate hike bets take a hit and traders are forced to re-assess or at the least pause on expectations that the Fed Reserves plans may be changed with regards to tapering…hence the love for FAANGs and stay at home stocks. US Bond yields fell Friday and continued to be pressured lower overnight as traders squared up some short bets into bonds. The DOW closed up 0.68% while the broader SP500 ended up 1.32% and the Nasdaq closed up 1.88% for the session. In Europe, major Indexes started the session stronger but later faded into the close. Expect that the DAX and FTSE will make back more lost ground tonight to follow on from the US strength although they too will be happy to wait and assess the effects of the new covid variant. So far news sources are touting a relatively ‘Mild’ strain after a doctor in South Africa said that symptoms were so far presenting as not severe and could be treated at home. The DAX was also pressured by stronger than expected CPI data out of Germany keeping ECB interest rate concerns alive.
The USD Index rallied to make back some of the losses but traders remained tentative until further information becomes available on Omicron. Traders took a more balanced view than Friday and will be comparing the new variant to the Delta variant which markets took in their stride. Expecting that the dollar will test into the recent lows below the 96.000 level to test the resolve of buyers before settling. Biden has already said that there will be no lockdowns for winter which may provide support for the dollar. The EURUSD did come under further selling pressure as more buyers from the Omicron induced spike, were happy to book some gains. Price did find a bid around 1.1261 which may be defended today if the USD finds more weakness. The GBPUSD initially rallied at the start of the European session before coming under selling pressure to push back into lows around 1.3285. Traders will be re-assessing rate hike expectations from the BOE so may look to continue the recent trend lower through 1.3285 if the anchor to the move lower at 1.3360 holds. The AUDUSD was range bound after support held at 0.7112 and resistance capped buyers at 0.7156. The Aussie was supported by the positive sentiment back into major share markets but is happy to await for more news on Omicron. Expecting to see price hold between the same range today. The USDJPY generally held onto the lows from the selloff as the USD grinded higher although safe have Yen buyers stood firm. Sellers will be watching to see if the 113.800 level holds today to further pressure the pair lower. Expecting that further downside will be dependant on what the USD does in coming sessions and how the Omicron variant pans out.
SPOT GOLD struggled to hold onto any gains as price pushed back down into 1780 and held a lower higher around 1800. Bulls will be hoping that the 1780 level can hold and will be watching any rally into 1800 intently. If the 1800 zone holds, we may see a break down below 1770. Crude Oil continued to come under pressure and retested into the lows around $69 a barrel. Buyers were unwilling to commit back into the action with price rejecting an early push up through $72. Watching to see how price reacts around the $68/69 zone to see if buyers start to provide some support in the near term. Copper also showed some uncertainty with price being held below the 4.3750 area. Expecting that buyers will hold price above the lows at 4.2815 but will not commit to a rally until more data on the new variant becomes available.
Cryptocurrencies were happy to move higher as bargain hunters provided support with Bitcoin and Ethereum leading the way. Bitcoin is currently trading at $58344.00 up 3.59% while Ethereum is trading at $4442.42 up 7.35% and Ripple is at $0.99404 up 6.76%.
The ASX200 fought back from a weak open yesterday as lingering virus fears kept the bulls at bay. The index ended the day down 39.5 points to 7239.8 with shares in Energy, Industrials and Financials finding the most pressure. Falling stocks outnumbered advancing ones by 1026 to 473 and 374 ended unchanged. The Nikkei again came under pressure ending down another 1.63% while the Hang Seng ended down 0.95%.
The ASX200 is expected to open up 25 points as the SPI200 held up off lows in a positive overnight session.
AUD RBA Deputy Gov Debelle Speaks 9:05am
JPY Unemployment Rate 10:30am
AUD Building Approvals and Current Account 11:30am
CNY Manufacturing PMI 12pm
JPY BOJ Gov Kuroda Speaks Tentative
EUR German Unemployment Change 7:55pm
EUR CPI Flash Estimate 9pm
CAD GDP 12:30pm
USD Fed Chair Powell Testifies and Yellen Speaks 2am
SPI200 INTRADAY LEVELS TO WATCH