The Morning Jumpstart


  • SPI200 (Sep) overnight futures down 25 pts to 5902
  • SP500 down 0.71 pts to 2809.21
  • NASDAQ down 2.79 pts to 7642.70
  • FTSE100 down 4.80 pts to 7054.60
  • DAX30 down 61.52 pts to 11715.03
  • GOLD futures (Dec) down $5.30 to $1225.70 an ounce
  • COPPER futures (Comex Dec) down $0.004 to $2.776 a pound
  • OIL futures (Nymex Nov) down $1.86 to $70.06 a barrel
  • CRB Index down 0.82 pts at 198.90
  • AUDUSD trading at 0.7108
  • EURUSD trading at 1.1500
  • GBPUSD trading at 1.3117
  • USDJPY trading at 112.6000


The US edged lower in choppy trade as the US Fed agreed on the need to raise rates turning traders attention back to higher bond yields. Also pressuring markets was a miss on revenue from IBM and a warning on the European auto sector. The DOW closed down 91.74 pts or 0.36% while the broader SP500 fared better down 0.03% and the Nasdaq also down 0.04%. In Europe major Indexes also edged lower as gains were booked from the previous rally as traders still are uncertain on how to tackle global headwinds such as trade and rising interest rates.

Minutes from the FOMC meeting showed that, despite Trumps criticism, policymakers are largely united on the need to raise borrowing costs further by more interest rate hikes to contain inflation. US bond yields gained as traders bet on further rates rises this year and next.

The USD was higher after the FOMC minutes said that the Fed is sticking to its guns on rate rises as the labour market continues to show strength. The GBP was lower on USD gains and as the European Union’s chief Brexit negotiator said that much more time was needed to secure an exit deal for Britain. The Pound also found pressure from lower than expected CPI data. The EUR and AUD were also weaker thanks to the higher USD.

Gold gave up some more gains to finish lower as traders favoured the USD for yield. Copper was again lower although stockpile data is showing dwindling inventory which may support price as traders continue to assess Chinese demand. Oil was lower after US inventories showed that stockpiles rose much more than expected which brought in the sellers.

Cryptocurrencies are holding onto recent gains as Bitcoin is currently trading at $6678.5 up 0.04% while Ethereum is at $212.03 down 0.4% and Ripple is at $0.47796 down 0.24%.

Locally, the ASX200 put in a strong session to close up 69.2 points. The Index was dragged higher by the banks and tech stocks while the mining sector underperformed to finish lower after BHP cut 2019 Copper output guidance. Advancing stocks outnumbered falling ones by 763 to 415 and 321 ended unchanged. Big movers were A2M which was up 9.2% and BAL up 12.50% while a ‘crowded’ favourite, APT, came under the axe falling 18.93.%. Traders today will potentially be cautious as uncertainty remains in the US and higher probability trades are looking harder to come by. The energy sector may come under pressure with a drop in Oil overnight.

The ASX200 is expected to open down 20 points after the SPI200 eased back overnight after a solid day on the ASX200 yesterday.



JPY  Trade Balance 10:50am

AUD  Unemployment Change and Unemployment Rate 11:30am

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GBP  Retail Sales 7:30pm

USD  Philly Fed Manufacturing Index and Unemployment Claims 11:30pm

USD  FOMC Member Quarles Speaks 3:15am