The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (8:10am AEDT)

  • SPI200 (Mar) overnight futures down 43 pts to 6170
  • SP500 down 10.78 pts to 2792.91
  • NASDAQ down 17.79 pts to 7577.57
  • Dow Jones down 206.67 pts to 25,819.65
  • FTSE100 up 27.66 pts to 7134.39
  • DAX30 down 9.02 pts to 11,592.66
  • GOLD futures US Session (April) down $11.80 to $1287.40 an ounce
  • COPPER futures US Session (Comex May) down $0.0200 to $2.9120 a pound
  • OIL futures US Session (Nymex April) up $0.68 to $56.48 a barrel
  • CRB Index down 0.40 points to 181.09
  • AUDUSD trading at 0.7092
  • EURUSD trading at 1.1342
  • GBPUSD trading at 1.3178
  • USDJPY trading at 111.7300

The US opened well but then found sharp selling pressure to close on its lows after an economic data release and as trade optimism fades. US Construction data came out unexpectedly lower which led to a sharp ‘risk off’ drop in the major indexes. Buyers were happy to lock in some gains ahead of a week full of economic data namely US employment data Friday night. The trade sensitive DOW closed down 0.79% while the broader SP500 was also down 0.38% along with the Nasdaq which closed down 0.23%. In Europe, shares were generally higher while the DAX lagged to close around breakeven. Trading is still focused on trade war hopes although traders are worried that roadblocks still exist as it gets into the details of a deal and China may not be so forthcoming on regulations and compliance checks.

The USD rallied for the fourth session in a row as traders bet that the US and China are edging closer to a trade deal. The dollar was also supported by a rise in US bond earlier in the session although did come under pressure after economic data came in unexpectedly lower. The EUR found weakness on dollar strength and then bounced after the data release as traders are positioning themselves ahead of the ECB release later in the week. The AUD held above the lows in a narrow range ahead of RBA today while the GBP continued to find weakness which started at the open of the European session. The USDJPY was also lower as it came under pressure after the data as equities dropped and safe haven buyers jumped into the YEN.

Gold was hit again to close lower as gold bulls are left scratching their heads. The rally in the dollar continues to pressure buyers and they failed to catch a safe haven bid on the drop in shares indexes. Prices fell early at the start of the European session and could not rebound through the US session. Oil was supported through the European session although was knocked down after construction data release but still managed to close higher. Copper continued to come under pressure as trade deal optimism fades and buyers lock in longer term gains.

Cryptocurrencies were lower across the board with Bitcoin backing off the $4000 level as bulls continue to struggle as it trades around $3725.3 down 2.41%. Ethereum is currently trading at $127.20 down 3.84% while Ripple is trading at $0.30418 down 2.13%.

The ASX200 ended the session up 24.7 points to 6217.4 yesterday. The Index opened strong but then drifted lower into the close ahead of interest rates release today from the RBA. A solid day in Asia on trade deal hopes helped support the local market. Rising stocks outnumbered declining ones by 605 to 567 and 332 ended unchanged.

The ASX200 is expected to open down 40 points after the SPI200 saw sellers jump in to follow the US lower.

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ECONOMIC DATA OUT TODAY (AEDT)

AUD Current Account 11:30am

CNY Caixin Services PMI 12:45pm

AUD RBA Rate Statement and Cash Rate 2:30pm

GBP Services PMI 8:30pm

EUR Retail Sales 9pm

USD FOMC Member Rosengren Speaks 11:30pm

USD ISM Non-Manufacturing PMI and New Home Sales 2am

GBP BOE Gov Carney Speaks 2:35am

USD Federal Budget Balance 6am

SPI200 INTRADAY LEVELS TO WATCH