The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (8:10am AEDT)

  • SPI200 (Sep) overnight futures up 9 pts to 5725
  • SP500 down 14.14 pts to 2582.12
  • NASDAQ down 65.56 pts to 6905.91
  • Dow Jones down 86.11 pts to 23,909.84
  • FTSE100 down 63.16 pts to 6855.02
  • DAX30 down 31.55 pts to 10,855.91
  • GOLD futures US Session (Feb) up $2.50 to $1292 an ounce
  • COPPER futures US Session (Comex Mar) down $0.0300 to $2.6320 a pound
  • OIL futures US Session (Nymex Feb) down $0.96 to $50.63 a barrel
  • CRB Index down 0.29 pts at 177.79
  • AUDUSD trading at 0.7198
  • EURUSD trading at 1.1469
  • GBPUSD trading at 1.2870
  • USDJPY trading at 108.1700

The US again opened weaker but held onto the losses in what was a very quiet and contained session. Weaker than expected Chinese import and export data weighed on the major stock indexes as traders remain concerned over trade talks between the US and China and a global economic slowdown. Data showed that imports in China fell 7.6% with expectations for a 5% gain while exports were down 4.4% with expectations for 3% gain. The DOW was down 0.36%, while the broader SP500 was down 0.53% and the Nasdaq also closed down 0.94%. In Europe Indexes were lower after the open on China’s data in a risk off move from traders. Weak industrial output numbers in the Eurozone also pressured markets lower.

A massive bet in the US equity-options market had markets excited.
The trader sold 19,000 put options on the S&P 500 Index, obligating him or her to buy the market benchmark at 2,100 on Dec. 18, 2020. As long as the index doesn’t drop more than 22% from its current level of 2,582 by that date, the bet will earn the trader roughly $175 million in premiums.

The USD was choppy and continued to find sellers but finished only slightly weaker as the Euro held intraday support. The GBP rallied along with the AUD which both benefited from USD weakness although the AUD managed to bounce back from the day session after the weaker than expected Chinese data triggered selling into the currency pair. The EUR was unchanged while the safe haven yen rose against the USD as USDJPY was down on the previous close.

Gold again edged higher as traders were happy to buy into the safe haven commodity while Oil was down as commodities generally suffered across the board. Copper gave up yesterdays gains as slowing global growth saw selling pressure.

Cryptocurrencies bounced back to have a positive session with Bitcoin trading at $3640.5 up 4.42%. Ethereum is currently trading at $126.89 up 1023% and Ripple is at $0.32912 up 5.22%.

The ASX200 closed down 1.2 points to 5773.4 in a choppy session as gains from the open gave way to sellers into the close.

The ASX200 is expected to open up 10 points as the SPI200 held above support overnight in a relatively quiet session.

 

ECONOMIC DATA OUT TODAY (AEDT)J

EUR French Final CPI and Gov Budget Balance 6:45pm

EUR Trade Balance 9pm

USD PPI and Empire State Manufacturing Index 12:30am

EUR ECB President Draghi Speaks 2am

GBP Parliament Brexit Vote Tentative

SPI200 INTRADAY LEVELS TO WATCH