The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (7:15am AEDT)-

  • SPI200 (Sep) overnight futures down 12 pts to 5879
  • SP500 down 11.90 pts to 2755.88
  • NASDAQ up 19.60 pts to 7468.63
  • FTSE100 down 7.00 pts to 7042.80
  • DAX30 down 29.49 pts to 11524.34
  • GOLD futures (Dec) down $3.20 to $1225.50 an ounce
  • COPPER futures (Comex Dec) up $0.012 to $2.7795 a pound
  • OIL futures (Nymex Dec) up $0.41 to $69.53 a barrel
  • CRB Index up 0.07 pts at 197.25
  • AUDUSD trading at 0.7084
  • EURUSD trading at 1.1467
  • GBPUSD trading at 1.2968
  • USDJPY trading at 112.8000

 

The US had another mixed session with financial stocks dragging the market lower although the Nasdaq was higher awaiting important earnings later this week. Financials were hurt by a fall in US 10-year bond yields. Traders continue to battle global headwinds for shares as bonds start to outperform stocks, China tariff rhetoric picks up, USD strength, commodity prices and Italy’s budget. The DOW closed down 126.93 pts or 0.50% while the broader SP500 was down 0.43% but the Nasdaq managed to finish up 0.26%. In Europe major Indexes were lower as Brexit issues over the Irish border could see British Prime Minister Theresa May face a serious challenge to her leadership while traders are cautious as they await an EU response to Italy’s budget plans.

The USD rallied to close stronger thanks to a fall in the GBP and EUR. The GBP was dragged lower on fresh Brexit concerns over Northern Ireland while the EUR ended lower over uncertainty over Italy’s budget. The AUD was also lower being dragged down by local politics, as the Libs power is threatened, and a rally in the USD.

Base metal prices were stronger on the LME despite weaker stocks and a higher USD. Gold was slightly lower at the close as the USD rallied to pressure the precious metal. Copper managed to close stronger as traders remain conflicted between potential demand issues from China and easing physical supply. Oil also managed to bounce back after a few days of selling pressure and as the futures spot month changes to Dec.

Cryptocurrencies were lower across the board as Bitcoin (is USD) trades at $6548.1 down 1.05% and Ethereum is at $206.12 down 1.25% and Ripple is trading at $0.45965 down 1.87%.

Locally, the ASX200 started the week on the back foot to end down 34.6 points. Banks again come under pressure along with the Healthcare and IT Sectors. Declining stocks outnumbered rising ones by 703 to 442 and 345 ended unchanged. The index tried to rally into the close to mirror Fridays intraday action although price looked heavy from around midday as local politics weighed on traders sentiment. Asian shares were higher after China promised to stabilize its economy and offset the impact of US tariffs.

The ASX200 is expected to open down 5/10 points after the SPI200 saw a choppy session overnight.

 

ECONOMIC DATA OUT TODAY (AEST) –

AUD  RBA Assist Gov Debelle Speaks 9:35am

AUD  RBA Assist Gov Bullock Speaks 2:00pm

AUD  RBA Assist Gov Debelle Speaks 3:30pm

JPY  BOJ Core CPI 4pm

EUR  German PPI 5pm

GBP  MPC Member Haldane Speaks 9:30pm

GBP  BOE Gov Carney Speaks 2:20am

USD  FOMC Member Bostic Speaks 4:30am

 

SPI200 INTRADAY LEVELS TO WATCH –