The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 7am AEST)

  • SPI200 (Mar) overnight futures down 2 pts to 6461
  • SP500 closed
  • NASDAQ closed
  • Dow Jones closed
  • FTSE100 closed
  • DAX30 up 60.14 pts to 12,071.18
  • GOLD futures US Session (August) up $0.70 to $1289.90 an ounce
  • COPPER futures US Session (Comex July) up $0.0150 to $2.7150 a pound
  • OIL futures US Session (Nymex July) up $0.61 to $59.24 a barrel
  • CRB Index closed
  • AUDUSD trading at 0.6919
  • EURUSD trading at 1.1193
  • GBPUSD trading at 1.2677
  • USDJPY trading at 109.5300

In the US major stock indexes were closed for Memorial Day Holiday. Trumps recent meeting with Japans Prime Minister saw him press to even out the trade imbalance while he mentioned that he was happy with progress from North Korea even after a few missile launches. The DOW futures gave to indication of what to expect when they open tonight as the action was sideways from Saturdays close with no news to shock the market into action. In Europe, London was closed while the rest of the region ended with a positive session on EU election relief. Gains were mainly driven by regional politics on light volume after Greece called for a snap election and traders hope for a more business friendly government.

Elections in Europe saw parties committed to strengthening the union hold on to two thirds of seats. This left euro sceptic parties with limited success much to the relief of traders.

The USD Index initially moved higher in European trade before flat-lining with the pressing issue for traders being US interest rates and potential cuts later in the year. The Euro found selling pressure as recent buyers from the previous two sessions were squeezed out of the action. The GBP fell in European trade as investors keep the pressure on as a ‘no-deal’ Brexit is the main focus as data shows a big increase in short positions against the currency pair. The AUD reacted lower off resistance around 0.6935 as the action continues to be capped by potential interest rate cuts. Traders are looking ahead to Aussie interest rate data next week. The USDJPY found some YEN bargain hunters through the Asian session to push price higher but then was range bound through European and US trade.

Gold had a lackluster session with the US closed but did manage to edge slightly higher on light volume. Traders still seem to be digesting China comments and awaiting to see a reaction from the US as China says that the US is asking them to stop the development of state-owned enterprises which is against its core interests. Safe haven traders see no reason to exit with no expectations for a quick resolution and the potential for a quick escalation in the conflict. Oil continued to edge higher while Copper also had another positive session as price held above 2.6900to bring in the bulls.

Cryptocurrencies held onto gains as Bitcoin is currently trading at $8745.9 up 1.90%. Ethereum is trading at $267.03 up 0.13% while Ripple pushes ahead trading at $0.42390 up 4.34%.

The ASX200 was well contained yesterday oscillating between minor gains and losses all day. The final result was that the Index ended down 4.1 points to 6451.9. The IT sector was the biggest mover for the day with followed by Metals and Mining and the Resources sectors. Falling stocks outnumbered advancing ones by 617 to 583 and 377 ended unchanged.

The ASX200 is expected to open flat to up 5 points as the SPI200 was range bound overnight with no lead from the US.

ECONOMIC DATA OUT TODAY (AEST)

JPY BOJ Core CPI 3pm

EUR German Consumer Climate and Import Prices 4pm

EUR M3 Money Supply and Private Loans 6pm

GBP High Street Lending 6:30pm

USD Consumer Confidence 12am

SPI200 INTRADAY LEVELS TO WATCH