The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (8:10am AEDT)

  • SPI200 (Mar) overnight futures down 35 pts to 6235
  • SP500 down 22.54 pts to 2748.91
  • NASDAQ down 84.45 pts to 7421.47
  • Dow Jones down 200.23 pts to 25,473.23
  • FTSE100 down 38.45 pts to 7157.55
  • DAX30 down 69.83 pts to 11,517.80
  • GOLD futures US Session (April) down $1.20 to $1286.40 an ounce
  • COPPER futures US Session (Comex May) down $0.0060 to $2.9120 a pound
  • OIL futures US Session (Nymex April) up $0.31 to $56.53 a barrel
  • CRB Index down 0.36 points to 180.87
  • AUDUSD trading at 0.7012
  • EURUSD trading at 1.1187
  • GBPUSD trading at 1.3075
  • USDJPY trading at 111.6400

The US was weak right from the open after the ECB shows more concern about global growth than originally expected. The change in tone comes as the outlook for a potential EU rate rise essentially disappeared for 2019 as the European Central Bank changed its interest rate guidance and announced a new round of cheap bank loans sooner than expected. The lack of any positive catalyst and lingering growth concern had buyers running for cover and taking risk off the table ahead of employment data tonight in the US. US Bond yields moved lower on safe haven buying. The DOW closed down 0.78% while the broader SP500 was also down 0.81% and the Nasdaq led the charge again closing down 1.13%. In Europe, major indexes were lower with banks leading the charge. Weaker global growth, the U.S.-China trade war, Brexit uncertainty and debt concerns in Italy have taken their toll on a fragile euro zone making it hard for the ECB to withdraw decade long stimulus.

The USD rallied as safe haven buyers jumped into the currency as stocks fell and bonds rallied after the ECB statement release. The EUR, GBP and the AUD were all hit lower after the USD rallied on the back of the ECB release and a flight to safety out of riskier assets. The USDJPY was initially lower on safe haven YEN buying but held up well into the close.

Gold saw some choppy price action and was essentially flat into the close as any safe haven buying into the precious metal from gold bugs was offset by an appreciating USD. Oil edged higher even as the USD rallied as buyers rejected lows in the commodity on the back of support from OPEC supply cuts and progress on a trade deal. Sellers jumped in to pressure price lower on the US open after the ECB news but the move only gave up some gains made in the European session. Copper continued to come under pressure in the absence of any trade related news and as the USD rallied.

Cryptocurrencies had another contained session hovering around the recent levels. Bitcoin is currently trading at $3884.1 up 0.74% while Ethereum is at $137.46 up 0.25% and Ripple is at $0.31404 down 0.61%.

The ASX200 edged higher yesterday from the open then managed to hold onto the gains into the close in choppy trade. The Index followed on from the previous sessions big move up to finish up another 18.3 points to 6263.9. Mining and materials sectors struggled while Utilities, Telecommunications Services and Consumer Discretionary supported the market. Retail Sales came in less than expected while the Trade Balance was higher causing the AUDUSD to spike lower initially, then rally into the session close. Falling stocks outnumbered advancing ones by 575 to 553 and 355 ended unchanged.

The ASX200 is expected to open down 35 points as the SPI200 was dragged lower overnight as traders exited shares and went into safe haven assets in US trading.

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ECONOMIC DATA OUT TODAY (AEDT)

JPY Bank Lending, Current Account and GDP Data 10:50am

CNY Trade Balance Tentative

EUR German Factory Orders 6pm

EUR French Industrial Production and Trade Balance 6:45pm

CAD Employment Change and Unemployment Rate 12:30am

USD Non-Farm Employment Change and Unemployment Rate 12:30am

SPI200 INTRADAY LEVELS TO WATCH