The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT  (8:10am AEDT)

  • SPI200 (Sep) overnight futures down 85 pts to 5587
  • SP500 down 53.94 pts to 2546.01
  • NASDAQ down 156.93 pts to 6753.73
  • Dow Jones down 507.53 pts to 23,592.98
  • FTSE100 down 71.93 pts to 6773.24
  • DAX30 down 93.57 pts to 10,772.20
  • GOLD futures US Session (Feb) up $8.55 to $1249.95 an ounce
  • COPPER futures US Session (Comex Mar) down $0.0210 to $2.7420 a pound
  • OIL futures US Session (Nymex Jan) down $1.94 to $49.53 a barrel
  • CRB Index down 2.40 pts at 177.92
  • AUDUSD trading at 0.7175
  • EURUSD trading at 1.1346
  • GBPUSD trading at 1.2612
  • USDJPY trading at 112.8200

The US added to Fridays losses overnight with another selloff seeing the bulls run for cover. Funds managers may be going into ‘hunker-down’ mode as they prepare for a bear market into small caps on slowing economic growth. More traders are positioning themselves defensively as a Christmas rally has eluded Indexes. The DOW was down another 2.11%, while the broader SP500 was down 2.07% and the Nasdaq closed down 2.27%. In Europe shares were also lower as volatility continued and Brexit remains uncertain.

The USD was weaker as traders await an interest rate decision from the US Fed Reserve and more importantly, guidance for 2019. The Fed drew criticism from Trump who suggested they should ‘take the victory’ and pause not raise. The GBP and the EUR strengthened on USD weakness while the AUD ended the session flat as commodities indexes came under fire.

Gold found some safe haven buying as stock markets sank and the USD gave up the previous sessions gains. Oil fell below the $50 a barrel level as traders see rising US supply and dwindling demand even on expectations of OPEC production cuts. Copper continued to push lower as trade concerns  and weak Chinese data weighed on the bulls. The metal got no love from the weaker USD showing that buyers are happy to remain on the sidelines until US/China traders issues are resolved.

Cryptocurrencies had a strong night to rally across the board with Bitcoin currently trading at $3566.4 up 8.30% while Ethereum is at $95.55 up 9.62% and Ripple is trading at $0.33292 up 12.93%.

The ASX200 ended the day higher after a strong rally during the session to lift the index 56.3 points into the close to 5658.3. Traders were happy with the governments budget plans which is forecast to end more than a decade of deficits. Banks rallied into the close along with miners to support the market but it may all have been for nothing after the US was hit overnight. Advancing stocks outnumbered falling ones by 584 to 535 and 355 ended unchanged.

The ASX200 is expected to open down 85 points as the SPI200 gave up all of the gains from the days rally through the European and US sessions.


ECONOMIC DATA OUT TODAY (AEDT)

NZD  ANZ Business Confidence  11am

AUD  Monetary Policy Meeting Minutes  11:30am

EUR  German Ifo Business Climate  8pm

USD  Building Permits and Housing Starts  12:30am


SPI200 INTRADAY LEVELS TO WATCH