The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 7am AEST)

  • SPI200 (Mar) overnight futures down 9 pts to 6263
  • SP500 down 8.70 pts to 2870.72
  • NASDAQ down 32.73 pts to 7910.59
  • Dow Jones down 138.97 pts to 25,828.36
  • FTSE100 down 63.59 pts to 7207.41
  • DAX30 down 206.01 pts to 11,973.92
  • GOLD futures US Session (June) up $3.40 to $1284.80 an ounce
  • COPPER futures US Session (Comex July) down $0.0070 to $2.7670 a pound
  • OIL futures US Session (Nymex June) down $0.52 to $61.60 a barrel
  • CRB Index down 0.74 points to 179.01
  • AUDUSD trading at 0.6989
  • EURUSD trading at 1.1218
  • GBPUSD trading at 1.3014
  • USDJPY trading at 109.7500

The US saw buyers stand aside from the action and major Indexes edge lower as the tariff deadline nears. The European session found selling pressure to push markets sharply lower which turned around after Trump said that he had received a “beautiful letter” from Chinese President asking that they work together to resolve the issue. At the open of the US session, the DOW futures were down around 500 points but buyers staged a fight back to rally into the close and minimise the losses. The DOW closed down 0.54% while the broader SP500 was down 0.30% and the Nasdaq also closed down 0.41%. In Europe, shares had a rough session as traders positioned themselves for the event that the US raise tariffs on Chinese goods. Fear of the trade war escalating has kept the buyers out of the action until they can be confident that the trade war will not get out of hand.

The USD was generally lower across the board as safe haven buying into US bonds eased and bond yields rallied through the US session. Recent buyers into the dollar locked in some gains after Trumps comments on China trade. Traders are now expecting a resolution sooner rather than later as an increase in tariffs will see China retaliate and the trade war drag on and continue to hurt global economies. The EUR saw a short squeeze on the Trump tweet to spike hard and clear out some buyers. The currency pair ended the session higher. The AUD fought back from earlier loses to end at the same levels as the previous sessions close while the GBP also saw a mixed session to bounce back from earlier losses and finish slightly higher. The USDJPY selling pressure continued as traders parked funds in the safety of the YEN on concerns the trade war will escalate.

Gold found a safe haven bid overnight to close higher as traders await the outcome of two days of negotiations between the US and China. Oil saw a choppy session as price oscillated between gains and losses with traders managing to claw back losses into the US session close. Copper had a mixed session as buyers defended lows from a weak European session although price action is still on shaky ground as sellers hold lower highs. We expect to see the volatility pick up either way into the weekend before the end of the two day meeting on tariffs.

Cryptocurrencies were generally down across the board except for Bitcoin which continues to find buyers. Bitcoin is currently trading at 6130.9 up 2.94% while Ethereum is at $169.38 down 0.31% and Ripple is at $0.29568 down 2.01%

The ASX200 had a bit of a choppy session but managed to end the session in the green. The index closed up 26.2 points to 6295.3 with the Utilities, Energy and Telecommunications Services sectors being the main contributors. Advancing stocks outnumbered falling ones by 643 to 521 and 359 ended unchanged.

The ASX200 is expected to open down 5/10 points after the SPI200 came under pressure overnight.

ECONOMIC DATA OUT TODAY (AEST)

AUD RBA Monetary Policy Statement 11:30am

EUR German Trade Balance 4pm

GBP GDP Data, Manufacturing Production and Goods Trade Balance 6:30pm

CAD Employment Change and Unemployment Rate 10:30pm

USD CPI Data 10:30pm

USD FOMC Member Brainard Speaks 10:30pm

USD FOMC Member Williams Speaks 12am

USD Federal Budget Balance 4am

SPI200 INTRADAY LEVELS TO WATCH