The Morning Jumpstart


  • SPI200 (Sep) overnight futures unchanged at 5818
  • SP500 down 16.37 pts to 2750.76
  • NASDAQ down 66.15 pts to 7430.74
  • FTSE100 up 33.31 pts to 7029.22
  • DAX30 up 90.35 pts to 11614.16
  • GOLD futures (Dec) up $8.70 to $1230.70 an ounce
  • COPPER futures (Comex Dec) down $0.019 to $2.781 a pound
  • OIL futures (Nymex Nov) up $0.32 to $71.66 a barrel
  • CRB Index up 1.80 pts at 199.74
  • AUDUSD trading at 0.7132
  • EURUSD trading at 1.1580
  • GBPUSD trading at 1.3154
  • USDJPY trading at 111.7700


The US started the week on the wrong foot as major Indexes were again weaker. US bonds yields were slightly higher on safe haven buying while being well below last weeks highs. US retail sales data was weaker than expected. US data also showed the government closed the 2018 fiscal year $779 billion in the red as tax cuts hit revenues and the government paid more to service its growing debt. The DOW closed down 89.44 pts or 0.35% while the broader SP500 was also down 0.59% and the Nasdaq was dragged down by Apple to close down 0.88%. In Europe, shares started the session weaker but then rally into the close to finish higher.

In Emerging markets, currencies are finding support from a drop in the USD with the Turkish Lira also finding support from the release of a US pastor which is expected to improve strained relationships with the US.

The USD was lower on weaker retails sales data and as US bonds consolidated after last weeks rally. The USD weakness meant that the GBP, EUR and the AUD all managed to close higher for the session with the AUD getting an extra boost from higher commodity Indexes.

Gold resumed its move higher helped along by the weaker USD. Copper gave up yesterdays gains as it continues to struggle to build any form of rally with continued US/China trade headwinds. Oil was higher as traders try to determine whether Saudi will soak up lost supply from Iran to contain prices as a rift between western powers and Saudi Arabia increases. Saudi Arabia’s King Salman on Monday ordered an internal probe into the unexplained disappearance of Jamal Khashoggi. A report being prepared by the Kingdom is expected to admit that the journalist was killed as the result of an interrogation that went wrong.

Cryptocurrencies had a positive night across the board as Bitcoin is currently trading at $66678.8 up 4.72%. Ethereum is trading at $210.42 up 4.62% and Ripple is at $0.45043 up 6.46%.

Locally, the ASX200 had another session dominated by the bears to close down 58.6 points. Financials led the index lower as traders grow concerned over a hit to earnings as after a royal commission uncovered serious misconduct. Energy were among the few gainers for the session and may continue to find some strength today. Commodity Index ETFs were higher overnight which may support our miners today. Declining stocks outnumbered rising ones by 759 to 443 and 348 ended unchanged.

The ASX200 is expected to open down 5 points as the SPI200 held in a narrow range overnight.



AUD  Monetary Policy Meeting Minutes 11:30am

CNY CPI and PPI Data 12:30pm

EUR  German Import Prices 5pm

GBP  Average Earnings Index and Unemployment Rate 7:30pm

EUR  Trade Balance 8pm

GBP  MPC Member Cunliffe Speaks 12:15am

USD  Industrial Production 12:15pm

USD  FOMC Member Daly Speaks 7:15am

AUD  RBA Assist Gov Debelle Speaks 8:20am