The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT –

  • SPI200 (Sep) overnight futures down 51 pts to 5803
  • SP500 up 38.76 pts to 2767.13
  • NASDAQ up 167.83 pts to 7496.89
  • FTSE100 down 11.02 pts to 6992.91
  • DAX30 down 15.54 pts to 11523.81
  • GOLD futures (Dec) down $6.00 to $1221.60 an ounce
  • COPPER futures (Comex Dec) up $0.009 to $2.812 a pound
  • OIL futures (Nymex Nov) up $0.51 to $71.48 a barrel
  • CRB Index up 1.31 pts at 197.94
  • AUDUSD trading at 0.7111
  • EURUSD trading at 1.1544
  • GBPUSD trading at 1.3092
  • USDJPY trading at 112.1600

 

The US managed to finish a mixed session in the green and bounce back from the previous sessions rout. The DOW closed up 287.16 pts or 1.15% while the broader SP500 was also up 1.42% and the Nasdaq also found some love to close up 2.29%. Shares started the session on a positive note then were sold off down to the previous sessions lows where the they found support from bargain hunters to rally into the close. In Europe share Indexes failed to stage a recovery and follow the US although we do expect to see some catchup tonight. Europe still lags the US in growth which is keeping long term investors on the sidelines. News over the weekend regarding negotiations over the Irish border have put a potential Brexit deal on a knifes edge.

US Treasury Secretary Steven Mnuchin said on Saturday that Washington wants to include a provision to deter currency manipulation in future trade deals which saw Japan news media show concern with front page headlines.

The USD was stronger to close out the week as buyers jumped back in to focus on rising US interest rates. The GBP and the EUR were both weaker thanks to a bounce in the USD while the AUD managed hold up okay and closed slightly weaker. The Pound and EUR have both opened weaker today as Brexit news of a ‘potential no deal’ has gripped traders again.

Gold gave up some of the previous sessions gains as buyers locked away some profits. Copper managed to bounce and end the week on a positive note while Oil also managed to bounce back from some heavy losses the previous session as traders ‘buy the pullback’ and remain focused on easing supply concerns.

Cryptocurrencies are holding up with Bitcoin trading at $6347.5 up 0.54% while Ethereum is at $199.41 down 0.53% and Ripple at $0.42299 up 1.06%.

Locally, the ASX200 managed to finish the session Friday with an 11.9 point gain as traders went bargain hunting. Advancing stocks outnumbered falling ones by 652 to 512 and 343 ended unchanged. Gains across the board on Gold stocks along with other mining stocks helped to support the Index. Aussie Gold hold onto gains so it will be interesting to see how the goldies do today after some minor profit taking into gold Friday night. Oil stocks were lower which may find some support today after a rally in Crude Oil Friday.

The ASX200 is expected to open down around 20/25 points after the SPI200 edged lower through the European session to give up some of the gains made during the day.

 

ECONOMIC DATA OUT TODAY (AEST) –

JPY  Revised Industrial Production 3:30pm

USD  Retail Sales Data and Empire State Manufacturing 11:30pm

CAD  BOC Business Outlook Survey 1:30am

USD  Treasury Currency Report Tentative

 

SPI200 INTRADAY LEVELS TO WATCH –