The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 7am AEST)

  • SPI200 (Mar) overnight futures up 25 pts to 6251
  • SP500 up 22.54 pts to 2834.41
  • NASDAQ up 87.47 pts to 7734.50
  • Dow Jones up 207.06 pts to 25,532.05
  • FTSE100 up 77.92 pts to 7241.60
  • DAX30 up 114.97 pts to 11,991.62
  • GOLD futures US Session (June) down $4.30 to $1297.50 an ounce
  • COPPER futures US Session (Comex July) up $0.0040 to $2.7230 a pound
  • OIL futures US Session (Nymex June) up $0.30 to $61.34 a barrel
  • CRB Index up 2.35 points to 179.99
  • AUDUSD trading at 0.6943
  • EURUSD trading at 1.1205
  • GBPUSD trading at 1.2910
  • USDJPY trading at 109.6200

The US market bounced back overnight to make back some of the losses from the previous session as the tone of comments over trade changed. Trump referred to the escalating trade war as ‘a little squabble’ and also said that they have a good dialogue going with China. The markets took this as a positive and buyers went bargain hunting. The DOW closed up 0.82% while the broader SP500 was up 0.80% and the Nasdaq also closed up 1.14%. In Europe, shares also rebounded on hopes for a smooth and early finish to the trade war. Traders will continue to follow news on talks for any signs that tensions are increasing before adding risk to the markets.

The USD managed to bounce back from recent selling pressure as sellers locked in some gains and as the tone on the trade war changed. The EUR came under pressure early in the European session after Italy’s deputy prime minister said the country is ready to break EU budget rules if necessary to spur employment. The AUD found support from buyers to end the session unchanged as commodity indexes rallied to offset the strength in the USD. The GBP was under pressure after data showed wage growth in the quarter ending March was lower than expected and the number of people claiming unemployment benefits grew. The USDJPY held onto highs as dollar strength was contained by the safe haven bid into the YEN as it continues to pressure the pair and will do so until positive news flows on trade and tariffs between the US and China.

Gold gave up some recent gains but seemed to hold up okay under pressure from the rising dollar. Safe haven traders remain due to concern that the landscape for trade could change quickly and easily escalate on the back of a single ‘Tweet’. Oil made back some lost ground early in the European session but gave up a lot of the gains into the close of the US as traders await US Oil inventories. Copper prices managed to find some buying support overnight to reject new lows although sellers continue to hold minor lower levels and will do until the trade negotiations take a more positive turn.

Cryptocurrencies continue with their good form with Bitcoin trading at $7755.4 down 0.76% while Ethereum is trading at $204.94 up 2.77% and Ripple is at $0.38902 up 16.29%.

The ASX200 saw sellers come out in force yesterday to push the Index lower from the open touching down around 6203 before some bargain hunting saw a 30 point rally into the close. Buyers are still nervous that the trade war may suddenly escalate so are cautious of adding risk. The Index closed the day down 57.7 points to 6239.9 with Financials and Energy sectors leading the charge lower while Gold stocks performed well. Declining stocks outnumbered rising ones by 834 to 360 and 342 ended unchanged.

The ASX200 is expected to open up 25 points as the SPI200 moved higher overnight on the back of a positive European and US session.

ECONOMIC DATA OUT TODAY (AEST)

AUD Westpac Consumer Sentiment 10:30am

AUD Wage Price Index 11:30am

CNY Fixed Asset Investment, Industrial Production and Retail Sales 12pm

EUR German Prelim GDP 4pm

EUR Flash GDP 7pm

CAD CPI Data 10:30pm

USD Retail Sales Data and Empire State Manufacturing Index 10:30pm

USD Industrial Production 11:15pm

USD FOMC Member Quarles Speaks 11:30pm

USD Crude Oil Inventories 12:30am

SPI200 INTRADAY LEVELS TO WATCH