The Morning Jumpstart


  • SPI200 (Sep) overnight futures down 27 pts to 6150
  • SP500 down 23.90 pts to 2901.61
  • NASDAQ down 145.57 pts to 7879.51
  • FTSE100 down 91.94 pts to 7418.34
  • DAX30 down 43.44 pts to 12244.14
  • GOLD futures (Dec) up $0.80 to $1203.70 an ounce
  • COPPER futures (Comex Dec) down $0.049 to $2.785 a pound
  • OIL futures (Nymex Nov) down $1.75 to $74.66 a barrel
  • CRB Index down 2.44 pts at 198.79
  • AUDUSD trading at 0.7076
  • EURUSD trading at 1.1514
  • GBPUSD trading at 1.3016
  • USDJPY trading at 113.9000


The US saw traders running for cover as US Bond yields push into multi year highs on further strong economic data and concerns for higher inflation. The move seems more likely attributed to traders booking gains than fear gripping the market as investors assess a higher interest rate environment. When everyone is long the market, everyone will be selling together as they race to lock in gains. Tech stocks were among the biggest movers lower as they have been the biggest driver of the bull market. The DOW closed down 200.91 pts or 0.75% while the broader SP500 was also down 0.82% while the Nasdaq was hit hardest to close down 1.81%.  In Europe share Indexes were also lower on the back of a rise in government bonds which tracked their US counterparts.

The USD index was lower overnight but held near recent highs as traders digest Fed Chair Powells bullish comments on the economy. Traders will also be awaiting employment data out tonight for further information on wage growth. The GBP and the EUR were both higher on the USD weakness while the AUD lagged to finish weaker after continued technical selling into the AUDUSD carry trade. Traders are looking to sell AUD and buy the USD to benefit from rising US interest rates as the Aussie interest rate environment remains dormant.

Gold was relatively flat in light of a stock market selloff which suggests that traders are not looking for a safe haven trader being buoy by US economic strength. Copper was weaker on the back of general weakness into commodity indexes. Oil gave up some if its recent gains on profit taking and speculation for a rise in output from Saudi Arabia and Russia.

Cryptocurrencies had a better night with green across the board. Bitcoin is currently trading at $6587.2 up 1.77% while Ethereum is at $220.62 up 1.07% and Ripple is at $0.52805 up 1.04%.

Locally, the ASX200 was again supported by gains in the materials sector and a rally in financials as bargain hunters edged into the sector. The ASX200 finished up 30.2 points for the session but may be looking towards a weak open today as the US was hit overnight. The Aussie trade balance was higher than expected showing solid export growth. Advancing stocks outnumbered falling ones by 576 to 569 and 396 ended unchanged.

The ASX200 is expected to open down 25 points after the SPI200 had a rough session overnight to follow the US lower.



AUD  Retail Sales 11:30am

EUR  German Factory Orders and PPI Data 4pm

CAD  Employment Change, Unemployment Rate and Trade Balance 10:30pm

USD  Non-Farm Employment Change and Unemployment Rate 10:30pm

USD  FOMC Member Bostic Speaks 2:40am