The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (8:10am AEDT)

  • SPI200 (Sep) overnight futures down 10 pts to 5638
  • SP500 down 0.63 pts to 2650.44
  • NASDAQ down 27.98 pts to 7070.34
  • Dow Jones up 70.11 pts to 24,597.38
  • FTSE100 down 2.69 pts to 6877.50
  • DAX30 down 4.73 pts to 10,927.70
  • GOLD futures US Session (Feb) down $2.80 to $1247.20 an ounce
  • COPPER futures US Session (Comex Mar) down $0.0020 to $2.7680 a pound
  • OIL futures US Session (Nymex Jan) up $1.97 to $53.12 a barrel
  • CRB Index up 1.83 pts at 183.03
  • AUDUSD trading at 0.7224
  • EURUSD trading at 1.1363
  • GBPUSD trading at 1.2663
  • USDJPY trading at 113.5700

The US saw bulls take a breather as major Indexes edged lower for most of the session but did hold up into the close. Bulls were held in check as a Reuters Poll showed that the US Bond yield curve is expected to invert earlier than forecast with a recession to follow. Of course, this is speculation but did keep further risk out of the market. The US government posted a $205 Billion Deficit as Federal spending was up 18% and receipts down 1% compared to the same period in 2017. The DOW was up 0.29%, while the broader SP500 was down 0.02% and the Nasdaq closed down 0.39%. In Europe share Indexes were flat at the close of the session as traders could not add to the rally from the previous few days. Concerns over eurozone growth and Brexit continued to plague the bulls and offset positive signs from Italy and the US/China trade spat.

The USD edged higher in a rollercoaster day which saw swings up and down although the dollar could not hold on and gave up a lot of gains into the close. The GBP and the EUR were both weaker after the ECB comments but then managed to bounce back into the close of the US session. The comments highlighted continued concern over an unexpected economic slowdown and political turmoil. The GBP ended higher as the currency held onto gains after May won the vote which traders expect will give Brexit negotiations more leverage. The AUD ended higher than yesterdays close as buyers managed to hold onto gains after a rally through the end of the Aussie session and into the European. Currencies continued to be linked to the current state of play between the US and China and reacting to news headlines.

Gold was weaker as it continues to be linked to the swings in the USD. Oil was stronger after a drawdown in inventory data had traders looking for global supplies to balance by middle of next year. Copper edged lower after an initial rally from continued positive comments from China over trade run out of steam. The pressure from a rally in the USD capped the metals gains as buyers were squeezed back out of the action.

Cryptocurrencies again were lower as recent bulls were squeezed back out of the action. Bitcoin is currently trading at $3367.8 down 2.97% while Ethereum is at $87.20 down 3.52% and Ripple is at $0.30107 down 2.00%.

The ASX200 pushed higher into the close to end up 8.1 points to 5661.6 in yesterdays action. Gains in miners and resources stocks helped support the market while banks also performed well. Advancing stocks outnumbered falling ones by 588 to 501 and 328 ended unchanged.

The ASX200 is expected to open down 10 points after a lackluster session overnight for the SPI200.


ECONOMIC DATA OUT TODAY (AEST)

JPY  Tankan Manufacturing Index and Non-Manufacturing Index  10:50am

JPY  Flash Manufacturing PMI  11:30am

CNY  Fixed Asset Investment, Industrial Production and Unemployment Rate 1pm

EUR  German Flash Manufacturing PMI and Flash Services PMI  7:30pm

EUR  Flash Manufacturing PMI and Flash Services PMI  8pm

USD  Retail Sales Data  12:30am

USD  Industrial Production  1:15am


SPI200 INTRADAY LEVELS TO WATCH