The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 7am AEST)

  • SPI200 (Jun) overnight futures up 19 pts to 6412
  • SP500 up 5.84 pts to 2788.86
  • NASDAQ up 20.41 pts to 7567.72
  • Dow Jones up 43.47 pts to 25,169.88
  • FTSE100 up 32.86 pts to 7218.16
  • DAX30 up 64.27 pts to 11,902.08
  • GOLD futures US Session (August) up $6.90 to $1293.20 an ounce
  • COPPER futures US Session (Comex July) down $0.0140 to $2.6500 a pound
  • OIL futures US Session (Nymex July) down $2.40 to $56.41 a barrel
  • CRB Index down 1.58 pts to 178.76
  • AUDUSD trading at 0.6910
  • EURUSD trading at 1.1131
  • GBPUSD trading at 1.2606
  • USDJPY trading at 109.6000

In the US stock indexes steadied after the previous few sessions selloff but any gains were muted. Traders continue to focus on trade comments but were happy to take a breather overnight. Conflicting comments are still concerning as Trump says things are going well while China is a little more harsh. Traders are happy to re-evaluate risk after the recent selloff but we expect that the lack of clarity on trade will keep the pressure on. The spotlight is now on the US Fed for potential rate cuts after softer than expected inflationary data. The DOW closed up 0.17% while the broader SP500 was up 0.21% and the Nasdaq closed up 0.27%. In Europe, major indexes were stronger being propped up by media companies while tariff sensitive stocks continued to be on the chopping block.

US based equity funds come under pressure as they post $22 Billion net outflows due to trade tensions and market volatility. Data shows that flows were influenced by two significant liquidations from Fidelity. Generally, participants were net redeemers of equity ETFs and net purchasers of fixed income ETFs as a safe haven.

The USD was little changed overnight as the selloff into equities stabilised and US Bond Yields hover around lows. The Euro tested the longer term support at 1.1120/30 but buyers rejected the level and price holds slightly above. The GBP also managed to hold above previous lows after a spike lower into the start of the US session. The currency pair is still battling with a change of PM and potential messy exit from the EU. The AUD came under pressure as commodity indexes fell. The USDJPY ended flat after an initial spike higher was rejected into the close of the US session but the pair remains resilient on Japans domestic demand for Dollars.

Gold had a good session as buyers lifted price up off the lows on a safe haven bid. Price moved up through 1287 which may now lead to a test up to 1300 in coming days. Oil was again hit hard falling around 4% on the futures as price pushes below support levels potentially targeting 54.80 lows. Copper continued push lower as sellers have a head of steam and look further down to the 2.6000 zone.

Cryptocurrencies were having a good session to push higher until above mid session in the US when they reversed and spiked lower on heavy volume. Bitcoin is trading at $8316.6 down 3.80% while Ethereum is at $257.65 down 4.48% and Ripple is trading at $0.42370 down 5.16%.

The ASX200 was under fire from the open and continued to edge lower through the session. In the end the index was down 47.9 points to 6392.1. All sectors bar IT were lower with Metals and Mining, Resources and Materials leading the charge. Falling stocks outnumbered advancing ones by 686 to 475 and 407 ended unchanged.

The ASX200 is expected to open up 20 points as the SPI200 held lows on a positive session in the US.

ECONOMIC DATA OUT TODAY (AEST)

JPY Tokyo Core CPI and Unemployment Rate 9:30am

JPY Industrial Production and Retail Sales 9:50am

CNY Manufacturing and Non-Manufacturing PMI 11am

AUD Private Sector Credit 11:30am

EUR German Retail Sales 4pm

EUR German Prelim CPI All Day

EUR Italian Prelim CPI 7pm

CAD GDP 10:30pm

USD Personal Income and Spending 10:30pm

USD Consumer Sentiment and Inflation Expectations 12am

SPI200 INTRADAY LEVELS TO WATCH