The Morning Jumpstart


  • SPI200 (Sep) overnight futures down 77 pts to 5623
  • SP500 down 88.66 pts to 2701.71
  • NASDAQ down 283.09 pts to 7158.43
  • Dow Jones down 799.36 pts to 25,027.07
  • FTSE100 down 39.65 pts to 7022.76
  • DAX30 down 130.14 pts to 11335.32
  • GOLD futures (Feb) up $4.10 to $1243.70 an ounce
  • COPPER futures (Comex Mar) down $0.0510 to $2.7590 a pound
  • OIL futures (Nymex Jan) down $0.07 to $52.88 a barrel
  • CRB Index up 0.63 pts at 184.14
  • AUDUSD trading at 0.7340
  • EURUSD trading at 1.1341
  • GBPUSD trading at 1.2715
  • USDJPY trading at 112.8100


The US fell like a stone to be hit hard overnight and give up any gains made from the initial trade truce news. Traders sentiment turned negative on fading hope for a fast resolution to the US/China trade war and on the lack of specifics on the truce on commitments and timeframes. Concern also over the US bond ‘yield curve’ has traders running for cover ( Click Here for Info on Yield Curves ). The focus is now on the spread between the 2 year and 10 year bonds which is currently at its narrowest in over a decade. Historically there is a good correlation between the yield curve ‘inverting’ and the timing of the next recession. The DOW was down 3.10% while the broader SP500 also fell hard ending down 3.18% while the Nasdaq ended down 3.80%. In Europe shares were also hit but will have more to go tonight as they play catch up to the US. A weaker Asian session had traders questioning whether the truce will actually lead to a long term resolution.

The U.S. stock and bond markets will be closed on Wednesday to mourn the death of former U.S. President George H.W. Bush.

The USD pushed up off the intraday lows to close slightly higher as traders jumped in to the dollar as a safe haven as share indexes sank. The EUR was weaker along with the GBP and the AUD, which found some buying support after the RBA kept rates on hold, fell away through the US session to end slightly lower.

Gold managed to edge out some gains as traders bought into the commodity as a safe haven. Oil was down but only after giving up gains made through the European session as traders take note of an apparent threat from Iran to disrupt other countries’ oil shipments through the Gulf if the US continues ahead with efforts to halt Iranian oil exports. Copper continued to edge lower in a move that started in the previous session as traders assessed the trade truce.

Cryptocurrencies had a minor bounce but still holding lows as Bitcoin trades at $3966.7 up 1.63%. Ethereum is at $110.61 up 2.10% and Ripple is trading at $0.35420 up 1.35%.

Traders are starting to feel dizzy being on the merry-go-round which is the ASX200. The Index opened weak yesterday and continued to sell lower into the close to finish down 58.1 points at 5713.1. Caution remains on the ASX200 ahead of a week full of data releases as traders may still not be convinced to hold onto risk in the market. Losses in the big four banks pressured the index and sentiment as traders were happy to lock in some gains from the previous session. Asia also, was not convinced that the US and China can easily work out their differences and pushed lower in trade yesterday. We expect to see more of the same today as traders exit and pressure prices lower.

The ASX200 is expected to open down 70 points after the US crashed overnight to drag the SPI200 lower.



AUD  GDP  11:30am

CNY  Caixin Services PMI  12:45pm

EUR  ECB President Draghi Speaks  7:30pm

EUR  Final Services PMI  8pm

GBP  Services PMI  8:30pm

EUR  Retail Sales 9pm

CAD  Overnight Rate and BOC Rate Statement  2am

USD  Beige Book  6am