The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (As at 7:15am AEST)

  • SPI200 (Mar) overnight futures down 14 pts to 6194
  • SP500 up 10.01 pts to 2888.21
  • NASDAQ up 54.94 pts to 7964.24
  • Dow Jones up 6.58 pts to 26,157.16
  • FTSE100 down 3.66 pts to 7421.91
  • DAX30 up 55.34 pts to 11,905.91
  • GOLD futures US Session (June) up $3.70 to $1312.00 an ounce
  • COPPER futures US Session (Comex May) down $0.0130 to $2.9210 a pound
  • OIL futures US Session (Nymex May) up $0.49 to $64.47 a barrel
  • CRB Index up 1.10 points to 189.66
  • AUDUSD trading at 0.7171
  • EURUSD trading at 1.1275
  • GBPUSD trading at 1.3088
  • USDJPY trading at 110.9800

The US edged higher overnight amid tame inflationary data as the US Federal Reserve and European Central Bank left its ‘easy’ policy stances unchanged. The ECB also warned that risks still remain to the downside for growth but this did not really faze traders as they look ahead to US earnings which kicked off overnight with some positive results. On the Trade front, China agrees to establish ‘trade deal enforcement offices’, a mechanism to police any agreement. The DOW closed up 0.03% while the broader SP500 was up 0.35% and the Nasdaq also closed up 0.69%. In Europe, major stock Indexes rose although were capped after the US threatened to slap tariffs on goods from the European Union. In his ECB speech, president Mario Draghi confirmed policymakers were considering whether measures are needed to mitigate the impact on European banks from the central bank’s negative deposit rates.

The USD traded between gains and losses but edged its way lower into the US close. US Bond Yields slipped after the CPI data release which signalled that traders still expect rates to remain on hold and potentially a cut by years end. The EUR bounced back from earlier losses after Draghis comments on the Euro region and the currency managed to finish higher from yesterdays close. The GBP also managed to end with gains as traders await further news on a potential extension to Brexit. The AUD ended higher in a move that started during the day session after RBA Assist Gov spoke on the economy and earlier data on consumer sentiment unexpectedly gained. The USDJPY continued lower on USD weakness and as safe haven buyers held onto the YEN.

Gold had another positive night for the bulls to finish higher as the USD edged lower. Oil rallied strong after data showed a deep drawdown in Gasoline stockpiles which overshadowed US inventories which showed bigger than expected gains. Copper moved lower and could not find support from a weaker USD although the bulls look ready to make a charge higher.

Cryptocurrencies continued to hold onto their gains with Bitcoin trading at $5269.4 up 1.71% while Ethereuem is at $175.69 dow 0.13% and Ripple is trading at $0.35059 up 0.39%.

The ASX200 opened weaker but then managed to recover into the close as the Index finished up 1.8 points to 6223.5. The Index was pressured by the Energy, Consumer Discretionary and Resources Sectors. Declining stocks outnumbered rising ones by 579 to 553 and 385 ended unchanged.

The ASX200 is expected to open down 15 points after the SPI failed to kick on with the US overnight.

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ECONOMIC DATA OUT TODAY (AEDT)

AUD MI Inflation Expectations 11am

CNY CPI and PPI Data 11:30am

AUD RBA Assist Gov Debelle Speaks 12:30pm

EUR German Final CPI 4pm

USD PPI Data and Uneployment Claims 10:30pm

USD FOMC Member Clarida Speaks 11:30pm

USD FOMC Member Williams Speaks 11:35pm

USD FOMC Member Bullard Speaks 11:40pm

SPI200 INTRADAY LEVELS TO WATCH