The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (7am AEST)

  • SPI200 (Mar) overnight futures up 20 pts to 6324
  • SP500 up 2.80 pts to 2945.83
  • NASDAQ down 66.47 pts to 8095.39
  • Dow Jones up 38.52 pts to 26,592.91
  • FTSE100 down 22.44 pts to 74418.22
  • DAX30 up 16.06 pts to 12,344.08
  • GOLD futures US Session (June) up $3.90 to $1285.40 an ounce
  • COPPER futures US Session (Comex July) up $0.0100 to $2.9070 a pound
  • OIL futures US Session (Nymex June) down $0.03 to $63.47 a barrel
  • CRB Index up 0.07 points to 184.25
  • AUDUSD trading at 0.7048
  • EURUSD trading at 1.1216
  • GBPUSD trading at 1.3035
  • USDJPY trading at 111.4200

The US broader market SP500 edged higher along with the DOW overnight while the Nasdaq came under pressure from Alphabet results (Google parent company) that showed its slowest revenue growth in 3 years. Apple came out after the bell to announce a fall in profit and revenue but still beat analysts expectations. Apple fell during the session but is up in after hours trading which may help the Nasdaq bounce back tonight. Traders seem to be willing to take some profit off the table on negative earnings as major Indexes hover around all time highs. The DOW closed up 0.15% while the broader SP500 was up 0.10% while the Nasdaq closed down 0.81%. In Europe, major Indexes ended the session flat as gains in Energy stocks were offset by losses in Banks after some disappointing earnings.

The US Fed Reserve meet tonight on interest rates where they are expected to leave rates on hold and remain patient on any future rate changes. The Fed is also expected to let the Central Banks asset holdings continue to shrink unlike Trumps latest idea to cut rates dramatically and renew quantitative easing.

The USD fell away from highs as traders locked away some gains on recent long positions as they took a cautious stance ahead of the two day US Fed Reserve meeting. The EUR rallied after data in the Eurozone showed economic growth came in better than expected. The data showed economic growth accelerated to 0.4% from 0.2% for the quarter to March. With the recent pressure on the Euro, we may see some reversal in long term short positions if the positive data continues. The GBP also rallied on USD weakness while the AUD lagged to finish only slightly higher from the same time yesterday being stuck between support at 0.7035 and resistance at 0.7060. The USDJPY came under pressure as the USD moves lower ahead of the interest rate announcement tonight.

Gold continue to whipsaw traders as the commodity rallied overnight on weakness in the USD. Oil ended the session relatively flat after an initial spike to 64.75 on news that a potential rebellion against Venezuelan President would hit oil exports. Copper continued to edge higher off key support zones but still has some work to do before we may see a push up through key resistance around 2.9780.

Cryptocurrencies buyers came out to play overnight as Cryptocurrencies ran higher. Bitcoin is currently trading at $5306.3 up 1.72% while Ethereum is at $158.48 up 2.46% and Ripple is trading at $0.30891 up 4.74%.

The ASX200 had another rough session with the Index opening weak and not looking back as sellers kept the pressure on. The index closed down 34 points to 6325.5 with the Gold, Energy and Utilities sectors leading the market lower. Weak Chinese manufacturing data disappointed the market and continued to highlight weakness in the worlds second largest economy and Australia’s largest trading partner. Declining stocks outnumbered rising ones by 692 to 517 and 349 ended unchanged.

The ASX200 is expected to open up 20 points after the SPI200 rallied higher overnight to squeeze out some of the sellers.

ECONOMIC DATA OUT TODAY (AEST)

NZD Employment Change and Unemployment Rate 8:45am

CNY Bank Holiday All Day

EUR Bank Holiday All Day

GBP Manufacturing PMI and Net Lending to Individuals 6:30pm

USD ADP Non-Farm Employment Change 10:15pm

USD ISM Manufacturing PMI 12am

USD Crude Oil Inventories 12:30am

USD Fed Funds Rate and FOMC Statement 4am

USD FOMC Press Conference 4:30am

CAD BOC Gov Poloz Speaks 6:15am

SPI200 INTRADAY LEVELS TO WATCH