The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (8:10am AEDT)

  • SPI200 (Sep) overnight futures up 33 pts to 5821
  • SP500 up 19.85 pts to 2635.95
  • NASDAQ up 49.77 pts to 7084.47
  • Dow Jones up 162.94 pts to 24,370.10
  • FTSE100 down 27.76 pts to 6834.92
  • DAX30 down 12.62 pts to 10,918.62
  • GOLD futures US Session (Feb) down $2.00 to $1291.80 an ounce
  • COPPER futures US Session (Comex Mar) up $0.0250 to $2.6990 a pound
  • OIL futures US Session (Nymex Feb) down $0.07 to $52.24 a barrel
  • CRB Index up 0.12 pts at 179.76
  • AUDUSD trading at 0.7193
  • EURUSD trading at 1.1390
  • GBPUSD trading at 1.2990
  • USDJPY trading at 109.2100

The US had a late session surge higher of over 200 points to close up strong for the session. Markets got a lift from a report in the Wall Street Journal saying that the US were considering lifting tariffs on Chinese goods in order to calm markets and ease trade tensions. Even though the US Treasury Department said that no decision on tariffs have been made, traders were positive for a resolution before the March deadline. US bond yields were higher after the news. The DOW was up 0.67%, while the broader SP500 was up 0.76% and the Nasdaq closed up 0.71%. In Europe Indexes were lower being hurt by news that the US will investigate Huawei although we would expect to see markets higher tonight playing catchup to trade war news.

The USD was relatively unchanged for the session even as US bond yields rallied. The EUR eased a few pips from the previous mornings close while the GBP gained as traders saw Prime Minister Mays win of a confidence vote as a positive step for Brexit. The AUD rallied on the back of trade news to put the squeeze on recent sellers. The Yen also edged higher on the back of a positive trade outlook.

Gold edged lower as safe haven traders locked in some recent gains while Oil was unchanged at the close after an initial selloff in the European session was reversed through to the US close. Copper continued to get some traction from buyers as it closed higher being supported by trade news.

Cryptocurrencies ended the overnight session green across the board with Bitcoin trading at $3626.6 up 1.27%. Ethereum is trading at $121.92 up 0.82% and Ripple is at $0.32792 up 1.20%.

The ASX200 closed up 14.9 points to 5850.1 in a choppy session yesterday. Aussie financials followed the lead from the US counterparts to push higher and support the index. Materials stocks also did well although they were contained ahead of some key production reports later in the month. We expect to see some good buying come into today on the back of an improved outlook for trade and China.

The ASX200 is expected to open up 30 points after the SPI200 had a strong rally overnight after positive news on the trade war.

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ECONOMIC DATA OUT TODAY (AEDT)

AUD HIA New Home Sales Tentative

All G20 Meetings Day 2

EUR Current Account 8pm

GBP Retail Sales 8:30pm

CAD CPI Data 12:30am

USD FOMC Member Williams Speaks 1:05am

USD Industrial Production 1:15am

USD Prelim Consumer Sentiment 2am

SPI200 INTRADAY LEVELS TO WATCH