The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (8:10am AEDT)

  • SPI200 (Sep) overnight futures up 20 pts to 5572
  • SP500 up 7.53 pts to 2640.61
  • NASDAQ up 51.27 pts to 7020.52
  • Dow Jones up 34.31 pts to 24,388.95
  • FTSE100 down 56.57 pts to 6721.54
  • DAX30 down 166.02 pts to 10,622.07
  • GOLD futures US Session (Feb) down $3.20 to $1249.40 an ounce
  • COPPER futures US Session (Comex Mar) down $0.0335 to $2.7260 a pound
  • OIL futures US Session (Nymex Jan) down $1.83 to $50.78 a barrel
  • CRB Index down2.50 pts at 181.65
  • AUDUSD trading at 0.7186
  • EURUSD trading at 1.1353
  • GBPUSD trading at 1.2560
  • USDJPY trading at 113.2800

The US managed a minor rebound as Indexes turned positive into the close being helped by tech stocks. The session was a volatile one as traders have a lot to worry about and remained cautious on concerns over Brexit, global growth and tariffs. Traders will be focused on news on US/China negotiations over the 90 days ahead of the hard deadline of March 1st for further tariffs from the US on China imports. The DOW was up 0.14%, the broader SP500 was up 0.29% while the Nasdaq led the charge up 0.74%. In Europe shares were lower to play catchup from Friday nights action in the US. Investors are also awaiting a vote, which has been delayed, on British Prime Minister Theresa May’s EU divorce deal, which looks set to be rejected by parliament. This may create more havoc and selling pressure into equities. Europe may have further selling pressure on the horizon as global investors shy away thanks to Brexit, France, Italy and German Political risks.

The US bonds were initially higher after a parliamentary vote on Brexit was postponed. Safe haven buyers stepped in after the news but then later gave up gains as yields rallied and bond prices fell on the back of a rebound in shares.

The USD found some strength from a rally in bond yields into the close. The EUR and the GBP were both lower on Brexit concerns after a key parliamentary vote was delayed as it was not expected to pass. The AUD edged higher from Saturday mornings close.

Gold gave up some of the previous sessions gains on a rally in the USD. Oil also had a rough session to push back down to the $50 a barrel level even after OPEC production cuts. Copper is still struggling to gain traction and will do until US/China issues are resolved. Pressure continued for the metal as the USD rallied.

Cryptocurrencies gave up recent gains to push lower overnight with Bitcoin currently trading at $3415.8 down 5.83% while Ethereum is at $89.03 down 7.41% and Ripple is trading at $0.29743 down 6.56%.

The ASX200 yesterday followed in step with the US and was hammered lower to close down 129 points or 2.27% to 5552.5. Volatility spiked as traders rushed for the exits and stock holders finished bruised and battered. Golds stocks had a good day while financials continued to come under pressure. Weaker export and import data out of China over the weekend stoked the selling for the ASX200. Declining stocks outnumbered rising ones by 947 to 235 and 323 ended unchanged.

The ASX200 is expected to open up 20 points after the SPI200 bounced through the US session. Weaker commodity prices may see some selling pressure on stocks today.


ECONOMIC DATA OUT TODAY (AEST)

AUD  HPI and NAB Business Confidence  11:30am

GBP  Average Earnings Index, Unemployment Rate and Claimant Count Change  8:30pm

EUR  German ZEW Economic Sentiment  9pm

USD  PPI Data 12:30am

GBP  Parliament Brexit Vote  Tentative

SPI200 INTRADAY LEVELS TO WATCH