The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (7:15am AEST)-

  • SPI200 (Sep) overnight futures down 6 pts to 6182
  • SP500 down 10.30 pts to 2919.37
  • NASDAQ up 6.30 pts to 7993.25
  • FTSE100 down 31.82 pts to 7458.41
  • DAX30 down 80.06 pts to 12350.82
  • GOLD futures (Dec) up $2.10 to $1203.40 an ounce
  • COPPER futures (Comex Dec) down $0.033 to $2.825 a pound
  • OIL futures (Nymex Nov) up $1.47 to $72.25 a barrel
  • CRB Index up 0.81 pts at 194.78
  • AUDUSD trading at 0.7252
  • EURUSD trading at 1.1748
  • GBPUSD trading at 1.3119
  • USDJPY trading at 112.7800

 

The US was lower overnight with global markets retreating as a new round of tariffs kick in between the US and China. Traders are now moving to risk off as they see that both sides are starting to dig in their heels and not back down as China cancels planned talks. The DOW was down 181.45 pts or 0.68% while the broader SP500 was also down 0.35% and the Nasdaq managed to gain ending up 0.08%.  In Europe shares were lower as a mix of trade fears and Brexit concerns hit buyers.

Emerging markets may find support as the US look to start talks with Turkish leaders over a Christian Pastor which led to US tariffs on Turkey. Also, IMF funding to Argentina may be closer to happening as a deal is close between the two parties to extend credit lines.

The USD index was slightly higher after bouncing back from an early session selloff as traders focus on interest rates. The GBP bounced back to gain back some lost ground while the EUR also gained after the ECB’s Mario Draghi said that he expects a ‘vigorous’ pickup in eurozone inflation and backs moves to unwind the asset purchase program. The AUD come under pressure from increased trade war tensions as traders now move to risk off mode.

Gold was higher as safe haven traders looked to pick up a bargain. Copper gave up previous gains to move lower as both the US and China continue to go ‘tit for tat’ and are not looking to back down anytime soon. Oil rallied overnight much to Trumps disappointment who would prefer weaker prices, as buyers stepped up the pressure after OPEC would not raise output.

Cryptocurrencies saw the sellers come out overnight a Bitcoin trades at $6622.7 down 0.97%, Ethereum is at $233.61 down 3.45% and Ripple is trading at $0.52050 down 8.37%.

Locally, the ASX200 saw a weak open yesterday but the buyers stepped in to support price and grind price higher into the close to finish down only 7.7 points. Banks generally had a better session with CBA the only lagger to finish lower. Declining stocks outnumbered rising ones by 570 to 570 and 362 ended unchanged. Oil stocks had a solid session and more of the same is expected today as Oil rallied strong overnight.

The ASX200 is expected to open down 5/10 points as the SPI200 comes under selling pressure overnight.

 

ECONOMIC DATA OUT TODAY (AEST) –

JPY  Monetary Policy Meeting Minutes 9:50am

JPY  BOJ Gov Kuroda Speaks 3:35pm

GBP  MPC Member Vlieghe Speaks 6:40pm

USD  CB Consumer Confidence 12am

 

SPI200 INTRADAY LEVELS TO WATCH –