The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (7:25am AEDT)-

  • SPI200 (Sep) overnight futures flat at 5815
  • SP500 down 15.19 pts to 2740.69
  • NASDAQ down 31.09 pts to 7437.54
  • FTSE100 down 87.59 pts to 6955.21
  • DAX30 down 250.06 pts to 11274.28
  • GOLD futures (Dec) up $12.20 to $1233.40 an ounce
  • COPPER futures (Comex Dec) down $0.013 to $2.761 a pound
  • OIL futures (Nymex Dec) down $3.09 to $66.08 a barrel
  • CRB Index down 2.28 pts at 194.97
  • AUDUSD trading at 0.7089
  • EURUSD trading at 1.1472
  • GBPUSD trading at 1.2985
  • USDJPY trading at 112.4200

 

The US opened the session well and truly on the back foot but managed to see buyers push Indexes higher through the session to finish slightly shy of the previous close. Traders are wondering if the good times from tax cuts are over, as they assess what fallout is ahead from protectionist policies and tariffs. The DOW closed down 125.98 pts or 0.50% while the broader SP500 was down 0.55% and the Nasdaq also finished down 0.42%. In Europe major Indexes led the US lower as concerns from Brexit and Italy continued to weigh on investor sentiment.

According to news, the European Commission rejected Italy’s 2019 budget and said it will ask Rome to present a new document within three weeks.

The USD edged lower in a relatively quiet session for the major currency pairs. Although the USD is considered a safe-haven currency, weakness in US shares will hurt the dollar against other safe havens. The GBP and the EUR ended slightly higher as traders keep their attention on further Italian and Brexit news. The AUD edged lower as commodities continue to struggle although in a quieter session.

Base metal prices were mixed with Copper and Nickel lower while Lead, Aluminium and Zinc were higher. Gold had a big night thanks to safe haven demand and a fall in the USD. Copper gave up most of the previous sessions gains even as LME stockpiles continue to decline. Oil was hit hard as traders bailed on all things energy ahead of the US Oil inventory data tonight that is expected to show a rise in stockpiles.

Cryptocurrencies edged lower as buyers remain tentative. Bitcoin is trading at $6535.4 down 0.32% while Ethereum is at $205.55 down 0.65% and Ripple is at $0.45740 down 0.68%.

Locally, the ASX200 started the session okay and then proceeded to fall 50 points to touch down around 5850. Sellers pushed the ASX200 lower into the close to finish down 61.8 points as Banks continued to come under pressure along with Energy and Resources. The bears will be out today as we expect to see more of the same as commodity Indexes were lower and Oil was hammered. Declining stocks outnumbered rising ones by 820 to 368 and 326 ended unchanged. Asian shares gave up previous gains as they slipped lower yesterday on continued China/US concerns.

The ASX200 is expected to open flat after the SPI200 bounced off support to finish around the same level it started the overnight session.

 

ECONOMIC DATA OUT TODAY (AEST) –

JPY  Flash Manufacturing PMI 11:30am

EUR  German Flash Manufacturing and Flash Services PMI 6:30pm

EUR  Flash Manufacturing and Flash Services PMI 7pm

USD  Flash Manufacturing and Flash Services PMI 12:45am

CAD  BOC Overnight Rate and Rate Statement 1am

USD  Crude Oil Inventories 1:30am

USD  Beige Book 5am

 

SPI200 INTRADAY LEVELS TO WATCH –