The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 8:10am AEDT)

  • SPI200 (Mar) overnight futures down 11 pts to 6002
  • SP500 down 7.35 pts to 2745.68
  • NASDAQ up 6.58 pts to 7426.95
  • Dow Jones down 103.88 pts to 25,439.39
  • FTSE100 up 6.17 pts to 7197.01
  • DAX30 down 77.43 pts to 11,089.79
  • GOLD futures US Session (April) up $0.40 to $1315.50 an ounce
  • COPPER futures US Session (Comex March) down $0.0020 to $2.7710 a pound
  • OIL futures US Session (Nymex March) up $0.59 to $54.49 a barrel
  • CRB Index up 0.01 pts to 178.72
  • AUDUSD trading at 0.7100
  • EURUSD trading at 1.1291
  • GBPUSD trading at 1.2795
  • USDJPY trading at 110.5200

The US saw a weak open after retail sales data showed the steepest decline since 2009 in December. This put the bulls on the back foot from the open but they manage to fight back and rally into the close to finish slightly down on the broader market. The weaker than expected number pushed traders to take some risk off the table and move to the safety of US government bonds on heightened fears of a global slowdown. The DOW closed down 0.41% while the broader SP500 was also down 0.27% while the Nasdaq ended up 0.09%. In Europe the action was weak after data showed that Germany’s economy stalled in the fourth quarter.

The USD again reversed the previous sessions move and finished weaker on the retail sales data release. The move shocked the other major currency pairs linked to the USD. The EUR which was earlier weaker after German data, managed to make back the lost ground on the USD weakness. GBP was initially buoyed by the USD drop but then the sellers took over and continued the trend lower after British Lawmakers once again rejected Mays Brexit strategy. The AUD could not manage to gain on the USD weakness and bears continued to push the pair lower to give up gains made during the day session after an upbeat Chinese trade data report. The USDJPY suffered a hit from the data release to push back below the 111.00 mark and gave up a lot of recent gains.

Gold managed to get a boost from safe haven buying into the commodity along with the weakness into the dollar. An initial drop through the European session was erased at the open of the US. Oil came storming back from an earlier selloff after the weak retail sales data and move in the dollar. Price ended back where it started the session and holds highs around 54.50. Copper took a hit after the US data release although only giving up gains made through the European session on the back of increased positive sentiment on a potential trade deal between the US and China.

Cryptocurrencies were quite for the overnight session as Bitcoin is currently trading at $3602.1 down 0.13% while Ethereum is at $121.55 up 0.10% and Ripple is trading at $0.30254 down 0.22%.

After a good open and drive up towards the 6100 zone, the ASX200 fell over and traded lower into the close. The Index finished down 4.2 points to 6059.4 and could not follow the positive lead from the overnight markets. Banks edged lower all day which put continued pressure on the index along with Gold stocks that fell with the sector down over 1%. Rising stocks outnumbered declining ones by 574 to 529 and 358 ended unchanged.

The ASX200 is expected to open down 10 points after the SPI200 was pushed lower into the close of the US.

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ECONOMIC DATA OUT TODAY (AEDT)

CNY CPI and PPI Data 12:30am

EUR Italian Trade Balance 8pm

GBP Retail Sales 8:30pm

EUR Trade Balance 9pm

USD Import Prices 12:30am

USD Industrial Production 1:15am

USD Prelim Consumer Sentiment 2am

SPI200 INTRADAY LEVELS TO WATCH