The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 7am AEST)

  • SPI200 (Mar) overnight futures up 13 pts to 6508
  • SP500 up 24.13 pts to 2864.36
  • NASDAQ up 83.35 pts to 7785.72
  • Dow Jones up 197.43 pts to 25,877.33
  • FTSE100 up 18.04 pts to 7328.92
  • DAX30 up 102.18 pts to 12,143.47
  • GOLD futures US Session (June) down $2.80 to $1274.50 an ounce
  • COPPER futures US Session (Comex July) down $0.0120 to $2.7140 a pound
  • OIL futures US Session (Nymex June) down $0.11 to $62.99 a barrel
  • CRB Index up 0.26 points to 181.97
  • AUDUSD trading at 0.6885
  • EURUSD trading at 1.1160
  • GBPUSD trading at 1.2706
  • USDJPY trading at 110.4900

In the US, major Indexes were buoyed by a temporary easing of trade restrictions on China’s Huawei Technologies. It seems that the Trump administration is very sensitive to stock market declines so the reprieve on Huawei until Aug 19 may see some short term relief for bulls. Still, the bigger picture has not changed on US/China trade and investors will still be concerned for deteriorating negotiations. The DOW closed up 0.77% while the broader SP500 was also up 0.85% and the Nasdaq closed up 1.08%. In Europe, markets were higher as tech stocks rallied after news of the US reprieve on Huawei.

Asia is showing signs of being hurt by the US/China trade war after data in Singapore showed that economic growth was at its lowest in nearly a decade. Export data in South Korea showed a decline from the start of May along with Thailands economy slowing.

The USD was higher being lifted by higher Yields on US bonds and a better risk appetite overall. The Euro and the GBP spiked up in early US trade as May announced a new Brexit deal to the market. Unfortunately the gains were short lived and both the currency pairs came back down as Labour leader Jeremy Corbyn said they cannot support the deal. AUD continues to come under pressure as the RBA said that they would consider the case for lower interest rates at its June policy meeting. The USDJPY rallied hard as the Dollar appreciated and US yields rallied on improved risk appetite.

Gold gave up the previous sessions gains to edge lower as the USD move pressured the commodity. Oil was relatively unchanged as supply continues to be constrained by OPEC. Copper continues to be placed under pressure from sellers and hold lower highs. Price is still hovering at support around 2.7100 and we may see this break if trade tensions increase.

Cryptocurrencies held their ground in a relatively flat session as Bitcoin currently trade at $7985.9 up 0.02%. Ethereum is trading at $256.94 up 1.45% and Ripple is at $0.39777 down 0.55%.

The ASX200 opened weaker yesterday but then managed to claw back the losses into the close to finish up 24 points to 6500.1. Again the Financial sector led the charge with Gold also finishing strong while the IT sector dropped 3.49%. Falling stocks outnumbered advancing ones by 634 to 533 and 378 ended unchanged.

The ASX200 is expected to open up 10/15 points after the SPI200 finished on its highs in a positive overnight session.

ECONOMIC DATA OUT TODAY (AEST)

NZD Retail Sales Data 8:45am

JPY Trade Balance 9:50am

AUD Construction Work Done 11:30am

USD FOMC Member Bullard Speaks 3pm

GBP CPI and PPI Data 6:30pm

CAD Retail Sales 10:30pm

USD FOMC Member Williams Speaks 12am

USD Crude Oil Inventories 12:30am

USD FOMC Meeting Minutes 4am

SPI200 INTRADAY LEVELS TO WATCH