The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT

  • SPI200 (Mar) overnight futures flat at 6236
  • SP500 up 19.09 pts to 2907.41
  • NASDAQ up 36.81 pts to 7984.16
  • Dow Jones up 269.25 pts to 26,412.30
  • FTSE100 up 19.11 pts to 7437.06
  • DAX30 up 64.73 pts to 11,999.93
  • GOLD futures US Session (June) up $1.90 to $1295.820 an ounce
  • COPPER futures US Session (Comex May) up $0.0540 to $2.9410 a pound
  • OIL futures US Session (Nymex May) up $0.31 to $63.89 a barrel
  • CRB Index up 1.04 points to 188.36
  • AUDUSD trading at 0.7173
  • EURUSD trading at 1.1299
  • GBPUSD trading at 1.3074
  • USDJPY trading at 112.0200

The US ended the week with a bang as buyers stepped up the pressure to push major indexes higher on Friday. Bank stocks were supported on strong JP Morgan earnings results while signs that China is stabilizing helped riskier assets. Bond yields rallied on China export news as traders beleive that the global growth outlook is better that originally thought. The DOW closed up 1.03% while the broader SP500 was up 0.66% and the Nasdaq also closed up 0.46%. In Europe, markets were higher even after reports showed another cut to German growth forecasts. European bond yields also gained on the positve sentiment for the session.

The USD edged lower as traders favoured risk into share markets and away from safe haven assests such as the dollar. The EUR gained on the USD weakness after Chinas Trade Balance data release pleasantly surprised the market. The GBP also gained ground being helped by Brexit delay news and a risk on tone to markets although the spike to 1.3130 found selling pressure to push the currency back below 1.3100 even. The AUD rallied and held the gains into the close on better commodity prices, namely stronger iron ore and copper prices. The USDJPY rallied above the 112.000 zone thanks to a rise in the dollar against the safe haven YEN as traders searched for ‘risk on’ currency pairs.

Gold held its ground, after the previous sessions fall, being supported by dollar weakness to finish the day and week with minor gains. Oil made back some lost ground although could not hold on to earlier gains on a spike up through $64.50. Copper had a good session as the buyers pressured markets higher to hold just below resistance at 2.97750 on the back of positive China export data.

Cryptocurrencies pushed higher to continue the recent positive sentiment as Bitcoin holds above 5000 currently trading at $5141.8 up 1.69%. Ethereum is trading at $166.35 up 2.06% and Ripple is at $0.32571 up 0.41%.

The ASX200 opened up strong Friday and never looked back as buyers held onto the gains into the close. The index closed up 52.6 points to 6251.3 with the Financials, IT and Consumer Staples sectors leading the charge. Before the market opened, CBA said that they will cut more than 10,000 jobs to save costs which led traders to guess that there will be more of the same to follow from other banks to boost earnings. In a positve note for the market, the RBA said stress tests indicate banks have sufficient capital to withstand double digit unemployment rates and housing price falls exceeding 30%. Advancing stocks outnumbered falling ones by 618 to 489 and 362 ended unchanged.

The ASX200 is expected to open flat after gains on the SPI200 from the European session were given back at the close of the US session.

ECONOMIC DATA OUT TODAY (AEST)

EUR German Buba Monthly Report 8pm

USD FOMC Member Evans Speaks 10:30pm

CAD BOC Business Outlook Survey 12:30am

USD FOMC Member Evas Speaks 3am

SPI200 INTRADAY LEVELS TO WATCH