The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT –

  • SPI200 (Sep) overnight futures down 37 pts to 5874
  • SP500 down 25.82 pts to 2781.01
  • NASDAQ down 123.98 pts to 7406.90
  • Dow Jones down 201.92 pts to 25,989.30
  • FTSE100 down 35.34 pts to 7105.34
  • DAX30 up 1.84 pts to 11529.16
  • GOLD futures (Dec) down $16.50 to $1208.60 an ounce
  • COPPER futures (Comex Dec) down $0.0580 to $2.6790 a pound
  • OIL futures (Nymex Dec) down $0.48 to $60.19 a barrel
  • CRB Index down 1.26 pts at 188.45
  • AUDUSD trading at 0.7226
  • EURUSD trading at 1.1336
  • GBPUSD trading at 1.2972
  • USDJPY trading at 113.8300

 

The US closed out the week on a low note to give up some of the previous sessions gains. Buyers were happy to lock in some profits and take some risk off the table ahead of the US Veterans Day long weekend. The US Fed Reserve noted a dip is US business investment and suggested a rate hike was still on track for next month. The DOW closed down 0.77% while the broader SP500 was also down 0.92% and the Nasdaq was down 1.65%. In Europe shares dipped as mining and oil stocks sold off and disappointing earnings results weighed on the market.

The USD moved higher to pressure the major crosses as traders look towards an interest rate rise for next month from the Fed Reserve. The dollar also found buyers from safe haven buying into US bonds. Risky assets generally do not fair well in rising USD conditions as it translates into tightening financial conditions for borrowers of USD. The EUR, the AUD and the GBP were all lower on USD strength which marked its fourth straight week of gains.

Gold was hammered lower as buyers bailed on stronger than expected PPI data in the US and continued strength into the US Dollar. Commodities were generally weaker on slowing Chinese economic growth and the rising USD. Oil continued to fall to multi-month lows as global supply increases and buyers are held back by easing demand. Copper edged lower with no let up in selling pressure from the bears.

Cryptocurrencies are still hovering around similar prices as last week with Bitcoin trading at $6413.6 down 0.55%, Ethereum at $211.36 down 1.53% and Ripple trading at $0.50622 down 1.46%.

Locally, the ASX200 opened around the previous sessions close on Friday but then headed lower after the RBA statement to be down 30 points for most of the day. Buyers managed to lift the price into the close to finish down only 6.4 points. Financial stocks did okay to help buoy the index while the energy sector continued to come under pressure and miners were also a drag on the Index Friday. Advancing stocks outnumbered falling ones by 567 to 534 and 380 ended unchanged.

The ASX200 is expected to open down 30/35 points as the SPI200 followed the USD lower Friday night into the US long weekend for the Veterans Day holiday Monday.

 

ECONOMIC DATA OUT TODAY (AEST) –

JPY  PPI 10:50am

EUR  Italian Industrial Production 8pm

USD  Bank Holiday

USD  FOMC Member Daly Speaks 6:30am

 

SPI200 INTRADAY LEVELS TO WATCH –