The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (8:05am AEDT)-

  • SPI200 (Sep) overnight futures down 1 pts to 5809
  • SP500 up 13.16 pts to 2736.22
  • NASDAQ down 28.14 pts to 7328.8
  • Dow Jones up 190.87 pts to 25,461.70
  • FTSE100 up 9.72 pts to 7103.84
  • DAX30 down 24.03 pts to 11494.96
  • GOLD futures (Dec) down $0.80 to $1232.50 an ounce
  • COPPER futures (Comex Dec) down $0.0500 to $2.7530 a pound
  • OIL futures (Nymex Dec) down $0.35 to $62.79 a barrel
  • CRB Index up 0.28 pts at 192.58
  • AUDUSD trading at 0.7210
  • EURUSD trading at 1.1409
  • GBPUSD trading at 1.3041
  • USDJPY trading at 113.2200

 

The US was higher from the open as buyers edged price higher throughout the session. Traders were still cautious but happy to add risk even as they approach mid-term elections that may potentially change the course of the next few years. Concerns on trade kept negative sentiment high as Trump continued to say that China was ready to make a deal but it has to be the right deal. The DOW closed up 0.76% while the broader SP500 was up 0.63% while the Nasdaq was down 0.38%. In Europe Indexes generally weaker as traders continue to battle with headwinds on a rising USD and US/China trade issues.

The EUR is still looking for ways around Iranian sanctions to enable EU companies to continue trade with Iran. The EU does not approve of the re-imposition of US sanctions lifted under the 2015 nuclear deal. Also, Italy said that their budget will not change despite calls from EU peers and the EU Commission to amend it so that it would be in line with European Union laws.

The USD was lower as traders closed out positions ahead of US midterm elections later this week where volatility is expected to increase. The EUR, the AUD and the GBP were all higher as the GBP got an extra kick from the potential of a Brexit deal being done.

Gold was relatively unchanged although leaning to the negative side as traders go into a holding pattern. Oil could not hold onto earlier gains and closed lower after the US said that they will re-impose sanctions on Iran. The US has granted eight countries exemptions to continue to buy Iranian oil without penalties from the US. Copper fell as buyers unwound long positions with the continued overhang of trade fears between the US and China.

Cryptocurrencies were mixed overnight and lacking the volatility of the past that made them popular. Bitcoin is trading at $6446.2 down 0.33%, Ethereum is at $208.61 down 1.69% and Ripple is at $0.48438 up 3.09%.

Locally, the ASX200 was range bound for the session with sellers pushing price lower into the close. The ASX200 closed down 31.1 points to 5818.1 as traders sentiment is still weighed down by US/China trade relations. Gold and Energy were a drag on the index while banks were generally higher rallying into the afternoon. Declining stocks outnumbered rising ones by 632 to 488 and 355 ended unchanged.

The ASX200 is expected to open flat to up 5 points as the SPI200 was stuck in a tight range overnight. Traders will be focused on RBA at 2:30pm today…along with the Melbourne Cup.

 

ECONOMIC DATA OUT TODAY (AEST) –

AUD  RBA Rate Statement and Cash Rate 2:30pm

EUR  German Factory Orders 6pm

EUR  Final Services PMI 8pm

USD  Congressional Elections  All day

 

SPI200 INTRADAY LEVELS TO WATCH –