The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 7am AEST)

  • SPI200 (Mar) overnight futures down 12 pts to 6502
  • SP500 down 8.09 pts to 2856.27
  • NASDAQ down 34.88 pts to 7750.84
  • Dow Jones down 100.72 pts to 25,776.61
  • FTSE100 up 5.27 pts to 7334.19
  • DAX30 up 25.27 pts to 12,168.74
  • GOLD futures US Session (June) up $0.30 to $1273.50 an ounce
  • COPPER futures US Session (Comex July) down $0.0380 to $2.6770 a pound
  • OIL futures US Session (Nymex June) down $1.83 to $61.30 a barrel
  • CRB Index down 2.42 points to 179.54
  • AUDUSD trading at 0.6881
  • EURUSD trading at 1.1151
  • GBPUSD trading at 1.2660
  • USDJPY trading at 110.3400

In the US share indexes ended the session lower as traders took some risk off the table. Concerns that tensions may flare up again over trade between the US and China had traders rattled after a media report said the Trump administration was considering sanctions on video surveillance firm Hikvision, another Chinese tech company. The DOW closed down 0.39% while the broader SP500 was also down 0.28% and the Nasdaq closed down 0.45%. In Europe, markets were relatively unchanged being weighed down by fears that the trade war will escalate and concerns over Brexit.

The USD edged higher but seems to have stalled after the Fed minutes. The Feds ‘patient’ stance on interest rates have not changed and could even stay in place for ‘some time’ as infaltion remains muted. The Euro was flat as price held the lows while the GBP continued to move lower as trader await further news on Brexit. The AUD continues to be contained around the 0.6880 level on the potential for lower interest rates. Traders are now trying to work out whether the RBA may cut once or even twice. The USDJPY came off the highs from yesterdays session up at 110.700 but buyers are still holding higher lows.

Gold ended the session flat on a stagnant USD move and as safe haven buyers held back as they wait to see if price can hold support around the 1270 zone. Oil moved lower as buyers locked away previous gains on concern that the trade war will escalate. Copper also came under pressure on trade concerns as sellers broke through support at 2.7100 to trigger sell stops and a squeeze lower.

Cryptocurrencies fell away to give up some of the recent gains. Bitcoin is currently trading at %7786.6 down 2.22% while Ethereum is trading at $247.23 down 3.94% and Ripple is at $0.38040 down 4.50%.

The ASX200 pushed lower on the open yesterday then buyers edged the index higher into the close to finish up 10.6 points to 6510.7. Gains in the Industrials, Energy and Consumer Discretionary sectors helped to support the market while Gold stocks struggled. Rising stocks outnumbered declining ones by 661 to 516 and 373 ended unchanged.

The ASX200 is expected to open down 10 points as the SPI200 struggled to take out resistance levels in a weak US market.

ECONOMIC DATA OUT TODAY (AEST)

AUD Flash Manufacturing and Services PMI 9am

EUR German Final GDP 4pm

EUR French Flash Manufacturing and Services PMI 5:15am

EUR Flash Manufacturing and Services PMI 6pm

EUR German Ifo Business Climate 6pm

EUR ECB Financial Stability Review 6pm

EUR ECB Monetary Policy Meeting Accounts 9:30pm

USD Unemployment Claims 10:30pm

USD New Home Sales 12am

SPI200 INTRADAY LEVELS TO WATCH