The Morning Jumpstart


  • SPI200 (Sep) overnight futures up 39 pts to 5764
  • SP500 up 60.41 pts to 2742.58
  • NASDAQ up 208.89 pts to 7291.59
  • Dow Jones up 617.70 pts to 25,366.43
  • FTSE100 down 12.33 pts to 7004.52
  • DAX30 down 10.23 pts to 11298.88
  • GOLD futures (Feb) up $7.00 to $1226.90 an ounce
  • COPPER futures (Comex Mar) up $0.0820 to $2.8080 a pound
  • OIL futures (Nymex Jan) down $1.23 to $50.33 a barrel
  • CRB Index up 1.30 pts at 181.22
  • AUDUSD trading at 0.7312
  • EURUSD trading at 1.1370
  • GBPUSD trading at 1.2829
  • USDJPY trading at 113.6200


The US had a big night as the bulls were back out in force putting risk back into the stock market. The major Indexes were supported by a potential moderation in the pace of policy tightening after Fed Chair Powell said that the central banks interest rate was just below neutral. He also said that the gradual pace of rate rises was an exercise in balancing risks and that trade tensions, Brexit and emerging markets could still trouble US financial markets where asset prices are ‘elevated’. The DOW was up 2.50% while the broader SP500 was up 2.25% and the Nasdaq led the charge up 2.95%.  In Europe shares were relatively unchanged in a contained session ahead of Powells speech, so will have some catching up to do in tonights session.

The USD took a hit and traded lower after Powell mentioned future rate rises may be off the cards. The major USD based crosses benefitted as the EUR,  GBP and the AUD were all stronger. The GBP also found strength as traders took Bank of England comments as a positive as the BOE warned about the economic risks from exiting the European Union without a deal. They said that Britain could suffer worse than the GFC if they left the EU with a worse case Brexit scenario.

Gold rebounded from previous sessions weakness to close higher thanks to a fall in the USD. Oil did not hold up so well as buyers bailed after Inventory data showed US stockpiles rose for the 10th week in a row. Copper had a big session to rally over 3% on the futures market on weakness in the USD and on speculation that the US and China may come to an agreement to end the trade war.

Cryptocurrencies bounced back in a strong session with buyers ramping prices higher. Bitcoin is currently trading at $4351.2 up 12.18% while Ethereum is trading at $125.27 up 13.55% and Ripple is at $0.39980 up 11.27%.

The ASX200 traded in a narrowing range for the day which suited the bulls. At the close yesterday, the index finished down only 3.2 points to 5725.1. Asian stocks managed to find some strength being buoyed by US/China trade comments and that an agreement is a “good possibility”. Declining stocks outnumbered rising ones by 615 to 526 and 362 ended unchanged. Commodity companies are expected to benefit from a rally in metals overnight while the energy sector may suffer.

The ASX200 is expected to open up 40 points, although we will see what the DOW futures do after hours, as the SPI200 was dragged higher during a big session in the US markets.



JPY  Retail Sales  10:50am

NZD ANZ  Business Confidence  11am

AUD  Private Capital Expenditure  11:30am

EUR  German Prelim CPI  All Day

EUR  ECB President Draghi Speaks 7pm

EUR  German Unemployment Change 7:55pm

GBP  Net Lending to Individuals 8:30pm

USD  Personal Spending and Unemployment Claims 12:30am

USD  FOMC Meeting Minutes 6am