The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (7:15am AEDT)-

  • SPI200 (Sep) overnight futures down 51 pts to 5871
  • SP500 down 40.43 pts to 2768.78
  • NASDAQ down 157.56 pts to 7485.14
  • FTSE100 down 27.61 pts to 7026.99
  • DAX30 down 125.82 pts to 11589.21
  • GOLD futures (Dec) up $1.20 to $1228.60 an ounce
  • COPPER futures (Comex Dec) down $0.046 to $2.732 a pound
  • OIL futures (Nymex Nov) down $1.02 to $68.73 a barrel
  • CRB Index down 2.26 pts at 196.63
  • AUDUSD trading at 0.7105
  • EURUSD trading at 1.1459
  • GBPUSD trading at 1.3025
  • USDJPY trading at 112.2000

 

The US again came under fire as major share Indexes fell to close a lot weaker for the session. Traders were concerned about rising expenses thanks to higher interest rates and the impact of tariffs on future growth as earnings in industrial stocks disappointed. Also weighing on sentiment was news that US Treasury Secretary Mnuchin is the latest official to pull out of the upcoming Saudi Arabian investment conference to further strain relationships between the US and Saudi Arabia.  The DOW closed down 327.23 pts or 1.27% while the broader SP500 was down 1.44% and the Nasdaq led the charge lower finishing down 2.06%. In Europe major Indexes also closed lower over Brexit concerns and emerging market worries.

Escalating emerging market worries were a big concern for traders after the European Commission said Italy’s 2019 budget draft is in “particularly serious” breach of EU budget rules, a step that paves the way for what would be an unprecedented rejection of a member state’s fiscal plan.

The USD continued to edge higher after the FOMC minutes showed agreement on further interest rate rises. The GBP and the EUR were lower on Italian budget concerns coupled with continued Brexit uncertainty while the AUD managed to finish flat at the close.

Gold managed to etch out some gains as safe haven buyers nibbled at the precious metal although USD strength capped the gains. Copper was again lower as metals prices generally came under pressure from USD strength even as physical stockpiles dwindle. Oil was hit again after yesterdays data showed a lift in US inventories.

Cryptocurrencies were lower overnight being dragged lower by general negativity in the global markets. Bitcoin is currently trading at $6588.1 down 1.36% while Ethereum is at $206.48 down 2.97% and Ripple at $0.46407 down 3.00%.

Locally, the ASX200 managed to close out the session with a 3.3 point gain although traders will be on the back foot today. Losses in miners were offset by gains in financials yesterday but today may be a different story as both sectors are expected to open weaker. Advancing stocks outnumbered falling ones by 597 to 561 and 350 ended unchanged. APT provided some intraday action and managed to find some support to finish higher while the top ASX200 losers were BAL, ORE and GXY. Further pressure in Asian trade will also pressure buyers into the weekend.

The ASX200 is expected to open down 50 points as the SPI200 was dragged down by the weakness in the US overnight.

 

ECONOMIC DATA OUT TODAY (AEST) –

JPY  National Core CPI 10:30am

CNY  GDP, Industrial Production and Retail Sales 1pm

JPY  BOJ Gov Kuroda Speaks 5:30pm

EUR  Current Account 7pm

GBP  Public Sector Net Borrowing 7:30pm

CAD  CPI Data and Retail Sales 11:30pm

USD  Existing Home Sales 1am

USD  FOMC Member Bostic Speaks 3am

GBP  BOE Gov Carney Speaks 3:10am

 

SPI200 INTRADAY LEVELS TO WATCH –