The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (7:20am AEDT)

  • SPI200 (Mar) overnight futures up 16 pts to 6203
  • SP500 down 2.44 pts to 2808.48
  • NASDAQ down 12.49 pts to 7630.91
  • Dow Jones up 7.05 pts to 25,709.94
  • FTSE100 up 26.24 pts to 7185.43
  • DAX30 up 15.06 pts to 11,587.47
  • GOLD futures US Session (April) down $13.60 to $1295.70 an ounce
  • COPPER futures US Session (Comex May) down $0.0440 to $2.8910 a pound
  • OIL futures US Session (Nymex April) up $0.29 to $58.55 a barrel
  • CRB Index down 0.02 points to 183.39
  • AUDUSD trading at 0.7066
  • EURUSD trading at 1.1302
  • GBPUSD trading at 1.3226
  • USDJPY trading at 111.6900

The US halted the rally from the previous few sessions as focus went back on to US/China trade. Traders edged back into the safety of the USD on concern that a trade deal is being delayed after news that a meeting to end the trade war will not happen this month. Concern now is whether or not a deal is factored into the markets already. The DOW closed up 0.03% while the broader SP500 was down 0.09% and the Nasdaq also closing down 0.16%. In Europe, major indexes were buoyed by strength in the banking sector after Britain’s parliament voted to reject a disorderly Brexit. Overnight, lawmakers also voted against a second referendum on EU membership and for a delay on Brexit which leaves the door open for May to increase efforts to get a deal approved by parliament next week.

The USD was higher as safe haven traders edged into the currency as a meeting with China was delayed and as data showed that the US labour market is slowing. The EUR and the AUD both ended lower on USD strength as did the GBP as traders locked away some gains from the previous sessions rally into the major crosses. The USDJPY had a good night on the back of the rally into the USD trading up towards resistance at 112.0500 as buyers hold higher levels.

Gold saw traders lock away some gains as the USD rallied and pushed price back below $1300. Safe haven buyers who were happy to step in on Brexit uncertainty, bailed out of the precious metal as a Brexit deal may be back on the table. Oil continued to edge higher on the back of solid demand and output cuts from OPEC. Copper saw selling pressure on USD strength and on a trade deal delay to head down to test the 2.8630 zone.

Cryptocurrencies had a relatively uneventful session as bulls yearn for volatility of the past. Bitcoin is currently trading at $3875.7 up 0.20% while Ethereum is at $132.35 up 0.19% and Ripple is trading at $0.31134 down 0.98%.

The ASX200 had a mixed session yesterday not opening as strong as expected and then trading lower into negative territory mid session. The index managed to fight back into the close ending at 6179.6 up 18.4 points. Energy, Resources and Info Tech Sectors supported the index while Financials and Utilities lagged. Rising stocks outnumbered declining ones by 655 to 508 and 329 ended unchanged.

The ASX200 is expected to open up 15 points after the SPI200 held onto minor gains through to the US close. The index could come under further pressure on the back of a delay for a US/China trade deal and as data showed China’s industrial output grew at its slowest pace in 17 years.

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ECONOMIC DATA OUT TODAY (AEDT)

JPY Monetary Policy Statement, BOJ Policy Rate and Press Conference Tentative

JPY BOJ Gov Kuroda Speaks 7:55pm

EUR Final CPI Data 9pm

USD Empire State Manufacturing Index 11:30pm

USD Industrial Production 12:15am

USD Prelim Consumer Sentiment and Inflation Expectations 1am

SPI200 INTRADAY LEVELS TO WATCH