The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (8:10am AEDT)

  • SPI200 (Mar) overnight futures down 1 pts to 6130
  • SP500 down 1.57 pts to 2792.33
  • NASDAQ up 5.21 pts to 7554.51
  • Dow Jones down 72.82 pts to 25,985.16
  • FTSE100 down 43.92 pts to 7107.20
  • DAX30 down 53.46 pts to 11,487.33
  • GOLD futures US Session (April) down $6.90 to $1321.60 an ounce
  • COPPER futures US Session (Comex May) up $0.0180 to $2.9680 a pound
  • OIL futures US Session (Nymex April) up $1.46 to $56.96 a barrel
  • CRB Index up 1.82 points to 183.23
  • AUDUSD trading at 0.7139
  • EURUSD trading at 1.1372
  • GBPUSD trading at 1.3306
  • USDJPY trading at 111.0000

The US came under pressure overnight as US trade chief said that he sees long term challenges with China and will need to maintain the threat of imposing tariffs on Chinese goods. General consensus is that the talks are progressing in the right direction but may not be as smooth as expected. The trade sensitive DOW closed down 0.28% while the broader SP500 was also down 0.06% while the Nasdaq closed up 0.07%. In Europe, shares starting on the backfoot and held losses into the close on the back of negative earnings news. The export heavy FTSE continued to be weighed down by a higher GBPUSD.

The USD managed to bounce back from negative territory to close with some strength after the previous session saw selling pressure when the US Fed said that they are happy to remain ‘patient’ on US monetary policy. The strength in the dollar saw pressure on the EUR and AUD through the European session to push them both lower while the GBP gained on Brexit optimism and held highs as the USD bounced. The USDJPY found some safe haven bids after US trade Chief Robert Lighthizers comments and also after Pakistan shot down two Indian jets spooking investors out of riskier assets and increasing tension between the nuclear armed neighboring countries.

Gold could not catch a safe haven bid after trade comments and Indian and Pakistan tensions but instead came under selling pressure due to strength in the USD. Oil rallied as US inventories data came out unexpectedly weaker showing down 8.6M barrels as apposed to an expected rise of 2.8M barrels. Copper came under pressure at the start of the US session but then fought back to make up the lost ground into the close finishing higher.

Cryptocurrencies were flat overnight managing to hold their ground from the previous session. Bitcoin is currently trading at $3810.8 down 0.12% while Ethereum is at $134.89 down 0.31% and Ripple is trading at $0.31225 down 1.64%.

The ASX200 was more subdued yesterday as price made back some of the losses from the previous session as it opened higher and held gains into the close. The Index closed the day up 21.9 points to 6150.3. The big four banks all finished in the green as the biggest gains by sector were in the Energy and Financials sectors. Rising stocks outnumbered declining ones by 600 to 553 and 370 ended unchanged.

The ASX200 is expected to open flat as the SPI200 closed out the session where it started. We may see miners supported today as commodity indexes rallied thanks broadly to the weakness in the USD.

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ECONOMIC DATA OUT TODAY (AEDT)

JPY Prelim Industrial Production and Retail Sales 10:50am

NZD ANZ Business Confidence 11am

AUD Private Capital Expenditure and Private Sector Credit 11:30am

CNY Manufacturing PMI 12pm

EUR German Import Prices 6pm

USD FOMC Member Clarida Speaks 12am

USD Advance GDP and Unemployment Claims 12:30am

SPI200 INTRADAY LEVELS TO WATCH