The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (7:35am AEDT)-

  • SPI200 (Sep) overnight futures down 51 pts to 5653
  • SP500 down 17.44 pts to 2641.25
  • NASDAQ down 116.92 pts to 7050.29
  • FTSE100 up 86.76 pts to 7026.32
  • DAX30 up 134.86 pts to 11335.48
  • GOLD futures (Dec) down $4.80 to $1231.00 an ounce
  • COPPER futures (Comex Dec) down $0.035 to $2.709 a pound
  • OIL futures (Nymex Dec) down $0.83 to $66.76 a barrel
  • CRB Index down 2.08 pts at 193.42
  • AUDUSD trading at 0.7059
  • EURUSD trading at 1.1385
  • GBPUSD trading at 1.2803
  • USDJPY trading at 112.3100

 

The US fell overnight in a volatile session as fresh concerns over the US/China trade war spooked investors. Stocks took a nosedive later in the session on a report that President Trump was preparing more tariffs on imports from China of $257 Billion. Traders concern over higher interest rates and company earnings being hurt by tariffs, is increasing. The yield on the US 10 year government bond decreased as bonds rallied, finding support from safe haven buyers. The DOW closed down 245.39 pts or 0.99% while the broader SP500 was down 0.66% and the Nasdaq also finished down 1.63%. In Europe shares prices were higher into the close as they bounced from the previous sell-off. Once the tariff news hit after the bell, European futures indices followed the US lower so a weak open is expected tonight.

In emerging markets, Italian banks rallied after rating agency S&P kept its credit rating two notches above non-investment grade for Italian sovereign bonds.

The USD bounced back as safe haven buyers edged back into bonds and the dollar. The EUR and the GBP were both lower on USD strength although the Euro may come under further pressure as news filters through that German Chancellor Angela Merkel would not seek re-election. The AUD also pushed lower on tariff concerns and as commodity indexes were lower.

Gold gave up some of the recent gains on a rally in the USD as buyers were quick to lock in some profits. Oil was lower also from selling pressure thanks to a rising USD and supply/demand concerns. Copper fell after the news of tariffs hit as traders remain concerned over China demand for the metal.

Cryptocurrencies were down across the board overnight with Bitcoin trading at $6334.8 down 2.20% while Ethereum is trading at $196.37 down 3.98% and Ripple at $0.44187 down 4.25%.

Locally, the ASX200 kicked up on the open and managed to hold onto the gains throughout the day into the close to finish up 63 pts at 5728. Financials and materials led the charge with a rally in Chinese Iron ore futures lifting miners. Traders await full year results from ANZ and NAB later this week. Declining stocks outnumbered rising ones by 591 to 514 and 332 ended unchanged.

The ASX200 is expected to open down 40 points as the SPI200 gets dragged lower by fresh US/China trade concerns overnight.

 

ECONOMIC DATA OUT TODAY (AEST) –

JPY  Unemployment Rate 10:30am

AUD  Building Approvals 11:30am

AUD  RBA Assist Gov Bullock Speaks 1:10pm

EUR  German Prelim CPI data  All Day

EUR  German Unemployment Change 7:55pm

EUR  Prelim Flash GDP 9pm

USD  Consumer Confidence 1am

CAD  BOC Gov Poloz Speaks 6:30am

 

SPI200 INTRADAY LEVELS TO WATCH –