The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT  (8:10am AEDT)

  • SPI200 (Sep) overnight futures unchanged at 5580
  • SP500 up 8.22 pts to 2554.16
  • NASDAQ up 30.18 pts to 6783.91
  • Dow Jones up 82.66 pts to 23,675.64
  • FTSE100 down 71.65 pts to 6701.59
  • DAX30 down 31.31 pts to 10,740.89
  • GOLD futures US Session (Feb) up $1.55 to $1253.40 an ounce
  • COPPER futures US Session (Comex Mar) down $0.0960 to $2.6590 a pound
  • OIL futures US Session (Nymex Jan) down $3.64 to $46.56 a barrel
  • CRB Index down 3.50 pts at 174.42
  • AUDUSD trading at 0.7181
  • EURUSD trading at 1.1364
  • GBPUSD trading at 1.2639
  • USDJPY trading at 112.5600

The US gave up most or the gains from a stronger open as Oil prices sank and as several US government agencies face a shutdown. There are a lot of issues for bulls to contend with which makes ‘remaining on the sidelines’ very attractive. The DOW was up 0.35%, while the broader SP500 was up 0.32% and the Nasdaq closed up 0.45%. In Europe shares continued lower remaining stuck in a downtrend as headwinds continue. Shares Indexes were dragged lower by poor economic data and lower Oil prices.

Both the VIX volatility Index and US bonds rallied as traders remained nervous and in search of safe havens.

The USD was choppy overnight ahead of the Fed Reserve Interest rate announcement as traders unwound positions to push the Dollar lower. It is widely expected that the Fed will raise rates and again signal an interest rate slow down amid turbulent markets and a weakening global economy. The GBP the EUR and the AUD all ended the session stronger as they await the rate announcement and direction on the USD.

Gold again found some safe haven buying as stock markets struggled and the USD was weaker. Oil sellers remain in charge as price was hammered overnight down more than 7%. Traders are still concerned over rising inventory levels in the US while waiting for OPEC to support prices. Copper also had a rough night as price closed down over 3.4% to take out some key support as buyers continued to hit resistance.

Cryptocurrencies were mixed overnight with Bitcoin trading relatively flat at $3556.0 up 0.08%. Ethereum is trading at $94.04 down 1.91% and Ripple is at $0.33209 up 0.23%.

The ASX200 ended the session yesterday down 68.8 points or 1.22% to 5589.5. Energy shares came under pressure along with Financials and Healthcare. A speech from China’s President Xi yesterday missed the mark for traders as they were expecting some comments on economic stimulus or the further opening-up of the Chinese economy. Asia was lower on the lack of any meaningful comments that could be taken from the speech. Declining stocks outnumbered rising ones by 772 to 325 and 305 ended unchanged.

The ASX200 is expected to open flat after the SPI200 managed to close where it started the night in a choppy session weighed down by selling pressure.


ECONOMIC DATA OUT TODAY (AEDT)

NZD  Current Account  8:45am

AUD  MI Leading Index  10:30am

JPY  Trade Balance  10:50am

EUR  German PPI Data  6pm

GBP  CPI Data  8:30pm

CAD  CPI Data  12:30am

USD  Current Account  12:30am

USD  Crude Oil Inventories  2:30am

USD  Federal Funds Rate and FOMC Statement  6am

USD  FOMC Press Conference  6:30am


SPI200 INTRADAY LEVELS TO WATCH