The Morning Jumpstart

MARKET SNAPSHOT  (7:10am AEST)

  • SPI200 overnight futures down 27 pts to 6016
  • SP500 down 5.53 pts to 2727.76
  • NASDAQ down 1.53 pts to 7424.43
  • FTSE100 down 71.70 pts to 7716.14
  • DAX30 down 121.75 pts to 12855.09
  • GOLD futures up $14.80 to $1309.60 an ounce
  • COPPER futures up $2.95 to $310 a pound
  • OIL futures down $1.17 to $70.67 a barrel
  • CRB Index down 0.71 to 205.66
  • AUDUSD trading at 0.7577
  • EURUSD trading at 1.1723
  • GBPUSD trading at 1.3385
  • USDJPY trading at 109.2800

The US ended lower to give up previous sessions gains after tensions between the US and North Korea increased after Trump cancelled a planned meeting with Kim Jong Un citing “tremendous anger and open hostility” and warned the U.S. military was ready in the event of any “reckless” acts by North Korea. The DOW was down 75.05 points or 0.30% while the SP500 was down 0.20% and the Nasdaq down only 0.02%. Autos also came under pressure as the Trump administration threatened to impose tariffs on auto imports. In Europe markets continued lower as traders locked in gains as carmakers shares came under pressure and Italian politics continued to weigh on sentiment.

Cryptocurrencies were mixed with some falling and some rallying. Bitcoin is currently trading at $7507 down 1.92% while Ethereum is at $585.43 down 1.77% and Ripple at $0.62226 up 1.35%.

The USD came under pressure after the Trump statement on North Korea and as trade war fears increased after the probe into carmakers saw auto shares lower. The EUR, GBP and AUD were all higher on the back of USD weakness.

Gold finally bounced out of the doldrums to finish strong for the session as safe haven buyers emerged.  Copper managed to bounce back from the previous sessions heavy selling but the technical picture still struggles. Oil was lower as traders contemplated that Russia and Saudi Arabia may lift output after Russian Energy Minister Alexander Novak said production cuts could be eased “softly” if OPEC and non-OPEC countries see the oil market balancing in June.

The ASX200 is is expected to open down 20/25 points after a number of ‘Trump tantrum’ fears drove markets lower overnight.

 

ECONOMIC DATA OUT TODAY (AEST) –

JPY  Tokyo Core CPI 9:30am

EUR  German Ifo Business Climate 6pm

GBP  GDP Data and Prelim Business Investment 6:30pm

AUD  RBA Assist Gov Bullock Speaks 10pm

USD  Durable Goods Orders 10:30pm

GBP  BOE Gov Carney Speaks 11:20pm

USD  Fed Chair Powell Speaks 11:20pm

 

SPI200 INTRADAY LEVELS TO WATCH –