The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (8:10am AEDT)

  • SPI200 (Mar) overnight futures up 2 pts to 6249
  • SP500 down 18.20 pts to 2771.45
  • NASDAQ down 70.44 pts to 7505.92
  • Dow Jones down 133.17 pts to 25,673.46
  • FTSE100 up 12.57 pts to 7196.00
  • DAX30 down 33.11 pts to 11,587.63
  • GOLD futures US Session (April) up $3.40 to $1288.10 an ounce
  • COPPER futures US Session (Comex May) down $0.0090 to $2.9250 a pound
  • OIL futures US Session (Nymex April) down $0.35 to $56.21 a barrel
  • CRB Index down 0.67 points to 181.23
  • AUDUSD trading at 0.7029
  • EURUSD trading at 1.1310
  • GBPUSD trading at 1.3179
  • USDJPY trading at 111.7700

The US saw buyers hold back and the major indexes edge lower into the close. Buyers are in a holding pattern as they await fresh catalysts whether that be a trade deal or new positive economic data. Data out overnight on the US deficits showed that Fed policymakers are in a quandary over inflation and increasing trade deficits. Strong domestic demand sucked in imports on a strong USD despite ‘America First’ policies and tariffs. The DOW closed down 0.52% while the broader SP500 was also down 0.65% and the Nasdaq led the charge closing down 0.93%. In Europe, major indexes finished mixed with the FTSE edging higher while the DAX moved lower. Buyers were happy to step aside ahead of ECB interest rate data and statement out tonight.

The USD was relatively contained and struggled for direction overnight to hover around breakeven as traders hold steady ahead of employment data Friday. The EUR and the GBP ended around the same levels as yesterdays close both recovering from earlier weakness in European trade. The AUD hovered around lows after being sold down during the day session on GDP data out that missed expectations. GDP was expected to grow by 0.5% but came in lower at 0.2% for the fourth quarter 2018. The USDJPY was also choppy swinging between gains and losses on a lack of catalysts.

Gold was essentially range bound for both the European and US sessions although did manage to push up into the close to end with minor gains. Oil was lower as US Oil inventories came out higher than expectations to bring in some selling pressure. The sellers hammered price lower after the data release but then price recovered into the close. Copper initially rallied through European trade but then came under pressure when the US opened and ended lower at the close.

Cryptocurrencies had a relatively flat session overnight to hold around the same levels as yesterday. Bitcoin is currently trading at $3857.7 up 0.02% while Ethereum is at $137.00 up 0.10% and Ripple is at $0.31546 down 0.13%.

The ASX200 had a big session to close up 46.3 points to 6245.6 at the close. Gold, Miners and Resources sectors led the charge higher as buyers continued the charge into the close as Chinese shares rallied in afternoon trade. Aussie GDP data came in less than expected which only added fuel to the fire for a potential interest rate cut from the RBA this year. Rising stocks outnumbered declining ones by 613 to 505 and 382 ended unchanged.

The ASX200 is expected to open flat as the SPI200 followed the US lower to give up gains made during the European session.

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ECONOMIC DATA OUT TODAY (AEDT)

AUD Retail Sales and Trade Balance 11:30am

GBP MPC Member Tenreyro Speaks 8:30pm

EUR Final Employment Change and Revised GDP 9pm

EUR Main Refinancing Rate and Monetary Policy Statement 11:45pm

EUR ECB Press Conference 12:30am

USD Unemployment Claims 12:30am

USD FOMC Member Brainard Speaks 4:15am

SPI200 INTRADAY LEVELS TO WATCH