The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (7:15am AEDT)

  • SPI200 (Mar) overnight futures down 1 pts to 6167
  • SP500 up 10.07 pts to 2815.44
  • NASDAQ up 25.79 pts to 7669.16
  • Dow Jones up 91.87 pts to 25,717.46
  • FTSE100 up 40.14 pts to 7234.33
  • DAX30 up 9.12 pts to 11,428.16
  • GOLD futures US Session (June) down $21.40 to $1295.50 an ounce
  • COPPER futures US Session (Comex May) up $0.0150 to $2.8780 a pound
  • OIL futures US Session (Nymex May) down $0.03 to $59.38 a barrel
  • CRB Index down 0.62 points to 183.33
  • AUDUSD trading at 0.7078
  • EURUSD trading at 1.1224
  • GBPUSD trading at 1.3050
  • USDJPY trading at 110.6200

The US managed to hold onto gains into the close after a selloff from the open was thwarted by the bulls. Price action has been holding higher lows and looks set for a run up to recent highs. The bulls were helped by a positive round of trade talks between the US and China along with a rally in US Bond Yields off the lows. Traders are still showing concern over economic growth after data showed the economy grew at a slower pace than expected. The DOW closed up 0.36% while the broader SP500 was also up 0.36% and the Nasdaq closed up 0.34%. European stocks opened well but then gave up gains to end the session flat as optimism on trade was outweighed by global growth concern and Brexit uncertainties. The FTSE gained thanks to weakness in the Pound which buoyed the Index.

The USD found strength shrugging off negative GDP data as bond yields rallied off lows although economic data showed a slowing economy which would suggest further weakness may be in the pipeline for the dollar. The dollar seems to be benefiting from a ‘best of a bad bunch’ mentality compared to other major currencies. The EUR eased slightly on continued concerns for growth which dragged down banking stocks thanks to easing bond yields. Traders also expect interest rates to be kept lower for longer which continues to pressure the Euro. The GBP moved lower after an indicative vote on Brexit ended in a deadlock. Lawmakers are expected to continue the debate tonight but it is not expected to lead to Mays deal being pushed through. The AUD came under pressure to trade down to the 0.7065 zone on RBA rate cut expectations. The USDJPY ended slightly higher on the back of dollar strength.

Gold was hit hard as recent buyers gave up and bailed on the commodity after a dollar rally surprised safe haven investors. Oil was flat as it bounced back from an earlier selloff after stronger than expected US inventory data is being offset by easing global stockpiles. Copper benefited from positive trade talk news to end the session stronger.

Cryptocurrencies ended mixed overnight as Bitcoin holds currently trading at $4027.4 up 0.05%. Ethereum is trading at $138.03 down 0.22% while Ripple is at $0.30719 down 0.12%.

The ASX200 opened the session to push lower but then managed to turn a corner and rally 60 points off the lows into the close. The Index finished up 40.1 at 6176.1 as all sectors finished in the green with Resources, Materials and Metals and Mining leading the charge. Rising stocks outnumbered declining ones by 635 to 463 and 368 ended unchanged.

The ASX200 is expected to open flat after the SPI200 held on to the gains from the day in range bound action overnight.

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ECONOMIC DATA OUT TODAY (AEDT)

JPY Tokyo Core CPI Data and Unemployment Rate 10:30am

JPY Prelim Industrial Output Production and Retail Sales 10:50am

AUD Private Sector Credit 11:30am

EUR German Import Prices and Retail Sales 6pm

EUR German Unemployment Change 7:55pm

GBP Current Account and GDP Data 8:30pm

CAD GDP Data 11:30pm

USD Personal Spending and Income 11:30pm

USD Revised Consumer Sentiment and New Home Sales 1am

USD FOMC Member Quarles Speaks 3am

SPI200 INTRADAY LEVELS TO WATCH