The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 7am AEST)

  • SPI200 (Mar) overnight futures down 29 pts to 6464
  • SP500 down 34.03 pts to 2822.24
  • NASDAQ down 122.56 pts to 7628.29
  • Dow Jones down 286.14 pts to 25,490.47
  • FTSE100 down 103.15 pts to 7231.04
  • DAX30 down 216.33 pts to 11,952.41
  • GOLD futures US Session (June) up $8.80 to $1283.00 an ounce
  • COPPER futures US Session (Comex July) up $0.0050 to $2.6830 a pound
  • OIL futures US Session (Nymex June) down $3.23 to $58.19 a barrel
  • CRB Index down 2.63 points to 176.92
  • AUDUSD trading at 0.6901
  • EURUSD trading at 1.1183
  • GBPUSD trading at 1.2668
  • USDJPY trading at 109.5900

In the US share indexes were beaten down as traders are worried that the trade war cold drag on with no end in sight and that its now turning into a technology cold war. The only shining light is that the major indexes bounced off their days lows into the close thanks to some bargain hunting. US bond yields fell across the board in safe haven buying and risk off mode. The DOW closed down 1.11% while the broader SP500 was also down 1.19% and the Nasdaq closed down 1.58%. In Europe, markets were also slammed on trade war concerns. The biggest driving factor is whether an escalation has been fully factored in yet and whether markets are going to see a lot more downside before things get better.

The USD Index initially spiked higher on trade war concern and safe haven buying but then fell into the US close after worse than expected manufacturing data released at the start of the US session. The Euro initially fell on the USD strength but then made back the losses to end the session in positive territory. The GBP traded much the same as the Euro although selling pressure persisted as Brexit concerns continue. The AUD managed to bounce up off support thanks to USD weakness and end on session highs after a push up through resistance at 0.6897 held. The USDJPY came under fire on both USD weakness and YEN safe haven buying.

Gold found a safe haven bid as traders see more turmoil to come. Both Gold and Aussie Gold rallied strong but paired some of the gains as the DOW bounced 150 points into the close to take some of the pressure off. Oil was slammed lower so expect to see no love in the Energy sector today. Sellers piled into the action as they questioned demand after the US inventories previously came out a lot higher than expected. Copper had a positive session as support held under the pressure of USD strength and then the buyers came in to the commodity to spike price higher as the USD rolled over.

Cryptocurrencies held their ground as the share market plunged. Bitcoin is currently trading at $7827.8 up 0.09% while Ethereum is at $243.75 down 1.71% and Ripple is trading at $0.37738 down 1.20%.

The ASX200 traded in negative territory for most of the session yesterday to end down 18.9 points to 6491.8. Losses in the Energy, Metals and Mining and Resources sectors led the market lower. Rising stocks outnumbered declining ones by 590 to 574 and 393 ended unchanged.

The ASX200 is expected to open down 25/30 points as the SPI200 came under selling pressure overnight to squeeze out some buyers.

ECONOMIC DATA OUT TODAY (AEST)

JPY Core CPI Data 9:30am

GBP Retail Sales 6:30pm

EUR Day 2 European Parliamentary Elections

USD Durable Goods Orders Data 10:30pm

SPI200 INTRADAY LEVELS TO WATCH