The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (7:15am AEDT)

  • SPI200 (Mar) overnight futures up 10 pts to 6125
  • SP500 up 20.10 pts to 2818.46
  • NASDAQ up 53.98 pts to 7691.52
  • Dow Jones up 140.90 pts to 25,657.73
  • FTSE100 up 18.71 pts to 7196.29
  • DAX30 up 72.83 pts to 11,419.48
  • GOLD futures US Session (June) down $7.00 to $1322.00 an ounce
  • COPPER futures US Session (Comex May) up $0.0070 to $2.8640 a pound
  • OIL futures US Session (Nymex May) up $1.23 to $60.05 a barrel
  • CRB Index up 0.92 points to 185.23
  • AUDUSD trading at 0.7133
  • EURUSD trading at 1.1266
  • GBPUSD trading at 1.3202
  • USDJPY trading at 110.5700

The US ended the session up although off the highs as buyers were capped by weaker than expected housing data and consumer confidence figures. Traders continue to be concerned over slowing economic growth as data comes in below expectations to challenge the bulls although worries of a recession have eased for now. The DOW closed up 0.55% while the broader SP500 was also up 0.72% and the Nasdaq closed up 0.71%. European stocks clawed back some recent losses but struggle to shrug off economic growth pessimism as the major Indexes end only slightly higher.

Yields on government bonds hovered around lows with the US 10-year Treasury yield trading around the 2.41% mark overnight. Germany’s benchmark 10-year bond remained near two and a half year lows. Traders remain concerned over falling yields and the inverted yield curve and are watching any movement closely for further signs that the bond market is pricing in a weakening economy. (Yield Curve and Rate Cuts)

The USD edged higher while the currency continues to remain choppy as buyers are reluctant to jump in as economic growth, although slowing, continues while dollar sellers have been burnt in the past. The EUR ended the session down on its lows as the currency continues to find selling pressure on fears of an economic downturn as Consumer confidence data came out lower than expected. The GBP edged higher with a focus on Brexit as May still struggles to get a Brexit vote through parliament. The AUD continued to drive higher as a bull run that started just after the ASX open yesterday, continued through the European and US sessions. China continues to try to stimulate its markets which would be supportive of the AUD. The USDJPY moved higher as a rally in shares drove safe haven buyers out of the YEN…maybe for now.

Gold safe haven buyers remained on the sidelines overnight as price ended the session lower as shares bounced with traders searching for bargains into the share market. Oil ended the session with solid gains as focus was back on tightening supplies as exports from Venezuela fall and US inventories decline. Copper continued to push higher into the close of the US session as buyers held higher levels to support the metal as they await further news on trade.

Cryptocurrencies ended the session relatively flat with Bitcoin currently trading at $3932.5 up 0.01%. Ethereum is trading at $134.34 up 0.79% while Ripple is at $0.29864 down 1.28%.

The ASX200 was stuck in a range for most of the session yesterday swinging between gains as losses. In the end the Index finished up 4.4 points to 6130.6 with the Utilities sector supporting the market while Energy and Consumer Discretionary sectors were a drag in the bulls. Falling stocks outnumbered advancing ones by 568 to 553 and 340 ended unchanged.

The ASX200 is expected to open up 10/15 points as the SPI200 managed to edge higher overnight.

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ECONOMIC DATA OUT TODAY (AEDT)

AUD RBA Assist Gov Kent Speaks 10am

NZD Official Cash Rate and RBNZ Rate Statement 12pm

EUR ECB President Draghi Speaks 7pm

USD Current Account and Trade Balance 11:30pm

USD Crude Oil Inventories 1:30am

SPI200 INTRADAY LEVELS TO WATCH