The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 8:15 AEDT)

  • SPI200 (Mar) overnight futures down 41 pts to 6005
  • SP500 down 25.56 pts to 2706.05
  • NASDAQ down 86.93 pts to 7288.35
  • Dow Jones down 220.77 pts to 25,169.53
  • FTSE100 down 79.51 pts to 7093.58
  • DAX30 down 302.70 pts to 11,022.02
  • GOLD futures US Session (April) down $0.80 to $1310.60 an ounce
  • COPPER futures US Session (Comex March) down $0.0060 to $2.8310 a pound
  • OIL futures US Session (Nymex March) down $1.35 to $52.66 a barrel
  • CRB Index down 2.46 pts to 178.10
  • AUDUSD trading at 0.7104
  • EURUSD trading at 1.1346
  • GBPUSD trading at 1.2953
  • USDJPY trading at 109.8400

The US was lower as a weak outlook for the global macro environment weighed on investor sentiment. A slowdown in global trade is affecting major economies as we see China and Europe falter. Traders went risk off on concerns that President Trump and President Xi Jinping will not meet before the March 1 deadline to reach a trade deal. The DOW closed down 0.87% while the broader SP500 was down 0.94% and the Nasdaq ended down 1.18%. In Europe, major Indexes fell after the European Commission sharply cut its growth and inflation forecasts for the euro zone economy this year and next. Germany’s DAX index was hit from the open after industrial output unexpectedly fell in Europe’s biggest economy.

The USD again was higher but more from weakness in other currencies than a play into USD from buyers. US bond yields were lower as safe haven buyers edged into the action which helped to support the USD. The EUR and the GBP were both weaker into the end of the US session as the GBP earlier gained sharply after the BOE noted concerns on global growth and slashed forecasts for Britain which drove local bond yields lower. The USDJPY found some safe haven buying into the pair through the US session although was down from the same time yesterday. The AUD recently took a nosedive after the RBA statement and continued to come under pressure overnight as traders expect the next step for interest rates is lower as global pressures build along with local housing market pressures.

Gold rallied off the lows through the European session as stock market pressure sees safe haven buying into the precious metal. Aussie gold was also a winner as the AUDUSD continued to find some sellers. Oil had a rough session to close down over 2.5% on the futures as traders expect lower demand as global economic growth slows. Copper backed off from highs made during the European session but managed to finish only slightly lower.

Cryptocurrencies were flat from the same time yesterday with mixed sessions as Bitcoin is currently trading at $3396.5 down 0.04% while Ethereum is at $104.55 up 0.55% and Ripple is trading at $0.29308 up 0.98%.

Solid day yesterday on ASX200 as the index closed up 66.4 points to 6092.5. The market opened strong and never looked back as banks helped support the rally. The Healthcare and Energy sectors were also good performers as advancing stocks outnumbered falling ones by 687 to 455 and 370 ended unchanged. Gold futures were lower but Aussie gold continued its grind up as the AUD came under more pressure during the days session.

The ASX200 is expected to open down 40 points as the SPI200 falls away from highs made during the day session as global markets come under pressure.

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ECONOMIC DATA OUT TODAY (AEDT)

JPY Bank Lending and Current Account 10:50am

JPY Average Cash Earnings 11am

AUD RBA Monetary Policy Statement 11:30am

USD FOMC Member Bullard Speaks 11:30am

EUR German Trade Balance 6pm

CAD Employment Change and Unemployment Rate 12:30am

SPI200 INTRADAY LEVELS TO WATCH