The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT –

  • SPI200 overnight futures up 6 pts to 6180
  • SP500 up 0.80 pts to 2904.98
  • NASDAQ down 3.67 pts to 8010.04
  • FTSE100 up 22.47 pts to 7304.04
  • DAX30 up 68.78 pts to 12124.33
  • GOLD futures (Dec) down $9.90 to $1198.30 an ounce
  • COPPER futures (Comex Dec) down $0.070 to $2.613 a pound
  • OIL futures (Nymex Oct) up $0.41 to $69.00 a barrel
  • CRB Index down 0.92 pts at 190.48
  • AUDUSD trading at 0.7153
  • EURUSD trading at 1.1625
  • GBPUSD trading at 1.3068
  • USDJPY trading at 112.0600

 

The US ended flat for the session as bulls were unable to kick on from the previous sessions strength. Expectations still lingered for further news on China and US to open trade talks although any deal will be a long way off. Turkey took steps to improve their tenuous situation which gave markets a boost of confidence. The DOW was up 8.68 pts or 0.03% while the broader SP500 was up only 0.03% also and the Nasdaq ending down 0.05%. In Europe shares were higher being helped along by news from Turkey and comments from ECB President Mario Draghi that focused on healthy domestic fundamentals, including rapid growth in employment and a rise in wages.

In Turkey, the president said Friday that they will be freezing new government investment projects to rein in spending. The day prior, the central bank lifted interest rates by 6.25% in a bid to stem inflation and bring back some confidence into the Lira. Volatility in the currency fell to its lowest levels in more than a month.

The USD index bounced to close out the week on a positive note as US bond yields increased and US Data came out positive showing solid consumer spending. The AUD, the GBP and the EUR were all lower against the USD.

Gold took another dive lower as the USD rallied and put pressure in the precious metal. Copper also edged lower on USD strength and as Chinese shares retreated. Oil managed to gain ground into the close as supply concerns over Iran sanctions continued to support buying.

Cryptocurrencies had a quiet weekend as Bitcoin trades at $6501.7 up 0.04% while Ethereum is at $220.46 down 0.19% and Ripple is at $0.28117 up 0.42%.

Locally, the ASX200 closed out the week on a strong note up 36.6 points to hold above the key 6100 level. Advancing stocks outnumbered falling ones by 704 to 453 and 358 ended unchanged. Traders went bargain hunting as they picked up shares that have been under pressure the last few weeks. The intraday action was the reverse of the previous session as buyers stepped in from the open and pushed prices higher into the close.

The ASX200 is expected to open up 10 points after a flat session in the US had the SPI200 edge up into resistance setting the scene for bulls to squeeze out the sellers.

 

ECONOMIC DATA OUT TODAY (AEST) –

EUR  Final CPI  and Italian Trade Balance 7pm

EUR  German Buba Monthly Report 8pm

USD  Empire State Manufacturing Index 10:30pm

 

SPI200 INTRADAY LEVELS TO WATCH –