The Morning Jumpstart


  • SPI200 (Mar) overnight futures up 25 pts to 6275
  • SP500 down 13.17 pts to 2932.47
  • NASDAQ down 40.71 pts to 8123.29
  • Dow Jones down 66.47 pts to 26,438.48
  • FTSE100 closed
  • DAX30 down 125.87 pts to 12,286.88
  • GOLD futures US Session (June) up $1.00 to $1282.30 an ounce
  • COPPER futures US Session (Comex July) up $0.0110 to $2.8300 a pound
  • OIL futures US Session (Nymex June) up $0.60 to $62.54 a barrel
  • CRB Index down 1.09 points to 180.68
  • AUDUSD trading at 0.6988
  • EURUSD trading at 1.1195
  • GBPUSD trading at 1.3093
  • USDJPY trading at 110.6700

The US was lower on renewed trade tensions after Trump threatened to hike tariffs this week if China don’t come to the party. The US said that China had backtracked on specific commitments over the past week in trade talks hence Trumps actions. The US and China will meet later this week to hammer out current issues where they hope to conclude a deal. Index futures were hammered on the open Monday morning but managed to bounce back when the share market opened for the US session to minimize the damage. The DOW closed down only 0.25% while the broader SP500 was down 0.45% and the Nasdaq also closed down 0.50%. In Europe, Indexes finished the session down although London may play catchup tonight as the FTSE was closed.

Trump slammed China over its trade practices on Monday but only after he praised his relationship with Chinese President Xi Jinping on Friday. Many believe that the comments were designed to speed up the negotiations and decision making in the hopes of getting a deal done. What the comments do, is remind traders that risk from broadsiding tweets or headlines on trade, continually lurk the markets.

The USD moved lower against major crosses after Trump said he will raise tariffs although Volume was thin with Tokyo and London markets closed for holidays. The EUR , the GBP and the AUD all came under pressure when the FX market opened for trade. The EUR and AUD traded in a range to oscillate between gains and losses with the Euro ending flat, while the GBP trended lower to give up most of the gains from Friday nights trading. The USDJPY came under pressure after the comments from USD selling with a lack of safe haven YEN buying to provide support.

Gold could not hold onto gains as share markets bounced back from lows during the day. The safe haven commodity extended gains from Friday only to edge lower during the US session as shares rallied. Oil started the week on the back foot as price was hit down to the $60 a barrel zone. Buyers then stepped into the action to take price back up into positive territory as supply/demand fundamentals continued to support the price. Copper also spiked lower on the open of the Asian session only to rally back above Friday nights close.

Cryptocurrencies held onto gains overnight with Bitcoin currently trading around $5742.4 down 1.01% while Ethereum is trading at $174.78 up 6.54% and Ripple is at $0.30414 up 0.51%.

The ASX200 was hit hard on the open, at one stage being down nearly 100 points, thanks to Trumps twitter comment on tariffs. The market managed to grind up off the days lows into the close to finish the session down 52.1 points to 6283.7. The Gold and Utilities sectors were the only shining lights while the rest of the sectors finished lower in a general selloff after the DOW futures opened yesterday morning and fell out of bed. Declining stocks outnumbered rising ones by 836 to 376 and 351 ended unchanged.

The ASX200 is expected to open up 25 points after the SPI200 bounced back overnight to claw back some of the days losses.


AUD Retail Sales and Trade Balance 11:30am

NZD Inflation Expectations 1pm

AUD Cash Rate and RBA Statement 2:30pm

EUR German Factory Orders 4pm

GBP MPC Member Cunliffe Speaks 6pm

EUR EU Economic Forecasts 7pm

USD FOMC Member Quarles Speaks 1:35am

GBP MOC Member Haldane Speaks 2:30am