The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT

  • SPI200 (Mar) overnight futures up 43 pts to 5864
  • SP500 up 34.75 pts to 2670.71
  • NASDAQ up 72.77 pts to 7157.23
  • Dow Jones up 336.25 pts to 24,706.35
  • FTSE100 up 133.41 pts to 6968.33
  • DAX30 up 286.92 pts to 11,205.54
  • GOLD futures US Session (Feb) down $9.70 to $1282.60 an ounce
  • COPPER futures US Session (Comex Mar) up $0.0320 to $2.7120 a pound
  • OIL futures US Session (Nymex Feb) up $1.73 to $53.80 a barrel
  • CRB Index up 2.46 pts at 182.21
  • AUDUSD trading at 0.7168
  • EURUSD trading at 1.1363
  • GBPUSD trading at 1.2872
  • USDJPY trading at 109.7800

The US ended the week with a Bang Friday as traders were optimistic that the trade conflict between the US and China will come to an end. Even though the rumors Thursday that US Treasury Secretary Mnuchin was considering lifting tariffs were denied, it still shows progress in talks between the US and China. The DOW was up 1.38%, while the broader SP500 was up 1.32% and the Nasdaq lagged slightly to close up 1.03%. In Europe major Indexes also had a big night on trade news after a Bloomberg report said China offered to ramp up imports from the US.

The USD was stronger after US Bond yields firmed and were supported after data showed manufacturing output increased. The EUR, the GBP and the AUD all found selling pressure on the back of the stronger USD. The Yen also edged higher thanks to a positive USD and a better trade outlook.

Gold gave up some of its previous gains as the recent rally is starting to look extended and buyers lock in some gains on speculation that the trade war may be coming to an end. Oil had a good finish to the week with a strong rally as cuts from OPEC and optimism for the global economy pick up. Copper rallied as the metals price continues to be linked to trade news and renewed demand from China.

Cryptocurrencies start the week on the back foot as they trade lower. Bitcoin is currently trading at $3549.9 down 3.92% while Ethereum is at $117.79 down 4.85% and Ripple is at $0.31784 down 3.63%.

The ASX200 closed up 29.5 points for the session Friday and 105 for the week at 5879.6. We expect to see some continued strength in the ASX200 today as buyers stretch the market into higher levels. Traders are pinning the bullish outlook on the US and China resolving their trade war soon. The metals and mining and resources sectors led the Index higher. Advancing stocks outnumbered falling ones by 647 to 412 and 361 ended unchanged.

The ASX200 is expected to open up 45 points as the SPI200 finished off the week with a bang as the US powered higher Friday night.

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ECONOMIC DATA OUT TODAY (AEDT)

CNY GDP, Industrial Production, Retail Sales and Unemployment Rate 1pm

AUD HIA New Home Sales Tentative

EUR German PPI Data 6pm

USD Bank Holiday

SPI200 INTRADAY LEVELS TO WATCH