OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 7/12/21 (as at 8am AEDT)
- SPI200 (Dec) overnight futures up 29 pts to 7314
- SP500 up 53.26 pts to 4591.69
- NASDAQ Composite up 139.68 pts to 15225.15
- Dow Jones up 646.95 pts to 35227.03
- FTSE100 up 109.96 pts to 7232.28
- DAX30 up 210.81 pts to 15380.79
- GOLD futures US session (Feb) down $4.50 to $1779.40 an ounce
- COPPER futures US session (Comex Mar) up $0.0715 to $4.3385 a pound
- OIL futures US Session (Nymex Jan) up $3.67 to $69.93 a barrel
- CRB Index up 2.61 pts to 223.25
- AUDUSD trading at 0.7051
- EURUSD trading at 1.1284
- GBPUSD trading at 1.3261
- USDJPY trading at 113.5100
- USD Index US Session (ICE Dec) up 0.173 to 96.287
US indexes kicked off the new week with a strong rally as the DOW took charge. The DOW rallied hard from the open as banks and energy shares came back to life after taking a hit last week. Traders were helped by comments from a South African health official who said that the caused only mild infections while Fauci was on the news pushing the same rhetoric. The news eased the tension for the Omicron variant early in European session and the US played catchup to the news on the open. Shares were generally supported across the board with Oil rallying although US 10-year bonds fell as yields rallied to pressure the interest rate rise narrative. Tech stocks still did well as FAANGs lifted the Nasdaq and SP500. The DOW closed up 1.87% while the broader SP500 ended up 1.17% and the Nasdaq closed up 0.93% for the session. In Europe, major Indexes were boosted mid session after the news on Omicron. Once the news hit the markets turned higher and traders soaked up some beaten up shares especially in travel and leisure to keep the Xmas rally intact. From here, expect the price action to be driven by ECB and inflation news as the Central Bank remains committed to the ‘transitory inflation line’.
The USD Index swung between gains and losses and then gains again throughout the day. Bulls wee happy with the Omicron news and continued the push higher. Expecting that the next big ticket item for the dollar will be US CPI on Friday which may give a better indication on the current state of inflation. For now, bulls remain happy to see the price edge higher and hold above 96.000. The EURUSD continued to push lower although sellers were kept in check by the lack of enthusiasm of USD bulls. Price held below the 1.1320 area and also confirmed some short term support around 1.1270. Expect that price will hold between the two levels today and look to flush out both sides of the action in a choppy session. The GBPUSD managed to work its way up off Fridays lows and squeeze out some sellers on a move up through 1.3252. The longer term trend down remains in force so we may expect to see some sellers on any push up to 1.3280/1.3300. The AUDUSD spent the whole day, from the start of the Asian session until the US close, making back some lost ground and grinding higher. Bulls will be hoping that the trend up can continue today but the longer term trend down may bring in more sellers to cap the action ahead of the RBA rate announcement. The USDJPY managed to work its way up and off the daily support zone around 112.550. Sellers were happy to cap the action up at resistance around 113.600 so expecting price to hold below the level today.
SPOT GOLD gave back some of Fridays rally and worked its way lower into the US close. The move down was well soaked up by buyers suggesting that another squeeze up may be on the cards. If so then expecting to see the 1800 zone tested in coming sessions. Crude Oil held an intraday support zone around 67.40 and rallied into the US close as sentiment was positive after Omicron news. The move up through 69.30 may bring in more short term buyers to put further pressure on sellers from the 74.00 area. Copper also held a nice intraday support area at 4.2500 and dragged in some buyers for a push back up into resistance at 4.3500. Expecting to see at least a flush and stop hunt above the 4.3500 area or potentially an extended squeeze higher.
Cryptocurrencies were relatively well contained during the session in the aftermath of the margin clearout into cryptos. Bitcoin was locked in a narrow range while Ethereum edged higher in the US session. Bitcoin is currently trading at $48988.80 down 0.41% (last 24 hours) while Ethereum is trading at $4221.72 up 2.02% and Ripple is at $0.79886 up 0.36%.
The ASX200 ended the session relatively unchanged yesterday after moving from green to red to green again. The index ended up 3.9 points to 7245.1 with shares in Utilities, Consumer Staples and Gold being the top performers. Falling stocks outnumbered advancing ones by 1160 to 372 and 287 ended unchanged. The Hang Seng took hit on China property and tech issues to end down 1.76% while the Nikkei was down 0.36%.
The ASX200 is expected to open up 65 points after the SPI200 rallied hard along with overnight markets.
JPY Average Cash Earnings and Household Spending 10:30am
CNY Trade Balance Data Tentative
AUD Cash Rate and RBA Rate Statement 2:30pm
EUR German Industrial Production 6pm
EUR ZEW Economic Sentiment and Revised GDP 9pm
USD Trade Balance 12:30am
SPI200 INTRADAY LEVELS TO WATCH