The Morning Jumpstart


  • SPI200 (Jun) overnight futures up 21 pts to 6383
  • SP500 up 22.88 pts to 2826.15
  • NASDAQ up 48.36 pts to 7575.48
  • Dow Jones up 207.39 pts to 25,539.57
  • FTSE100 up 5.93 pts to 7220.22
  • DAX30 up 9.64 pts to 11,980.81
  • GOLD futures US Session (August) up $6.00 to $1334.70 an ounce
  • COPPER futures US Session (Comex July) down $0.0420 to $2.6270 a pound
  • OIL futures US Session (Nymex July) down $1.76 to $51.72 a barrel
  • CRB Index down 3.15 pts to 172.34
  • AUDUSD trading at 0.6965
  • EURUSD trading at 1.1224
  • GBPUSD trading at 1.2684
  • USDJPY trading at 108.4400

The US stock continued the move up from the previous session factoring in further positive sentiment for rate cuts. Employment data overnight came out weaker than expected as private employers hired at the slowest rate in over nine years which they attribute to pressure from trade wars. Traders will be focused on comprehensive employment data out Friday for further signs of weakness. The DOW closed up 0.82% while the broader SP500 was up 0.82% and the Nasdaq also closed up 0.64%. In Europe, Indexes closed the session only slightly higher after giving up earlier gains into the close. Traders were buoyed by comments from Trump saying that Mexico may be ready to make a deal although building tensions between the EU and Italy capped the action.

A US rate cut potentially in July, may already be factored in to US bonds as yields have been holding just above their lows. With payroll data out Friday, a weak number may add to the expectations for a rate cut and support the bulls. If the number comes out stronger than expected, then we may see some buyers move quick to lock in gains and the share market fall.

The USD initially moved lower on the employment data release but then found strength to rally into the close and end higher. US bond yields rallied to support the dollar after comments predicting that the US will not impose tariffs on Mexico. The Euro fell to clear out some recent buyers as the Dollar rallied and Italian concerns squeezed buyers. The GBP also fell into the US close while the AUD moved lower thanks mainly to the USD move but may also be a late reaction to the RBA rate cut. The USDJPY found some strength as price confirms a short term base after a retest of 107.850. We may expect to see a squeeze on buyers ahead of US employment data Friday night.

Gold continued its move up as buyers prefer the precious metal for yield as rate cut talk encourages buyers. Aussie gold was stronger gaining an extra lift from weakness in the AUDUSD. Oil was down over 3% as sellers continued to pile into the commodity after Oil inventory data showed a surprise gain in stockpiles. Copper as expected, ran into sellers and fell over into the close on a move that could extend down to support around 2.5600.

Cryptocurrencies gain back some of the lost ground from the previous few sessions as Bitcoin is currently trading at $7725.5 up 0.72%. Ethereum is trading at $244.19 up 1.68% and Ripple is at $0.39860 up 1.63%.

The ASX200 opened up around 50 points higher yesterday but then faded into the close as sellers continued to step the market lower. The index finished the session up only 26.1 points to 6358.5 with the gold sector well and truly under performing. IT was the strongest sector with the Financials not far behind. Rising stocks outnumbered declining ones by 642 to 550 and 376 ended unchanged.

The ASX200 is expected to open up 20 points near yesterdays open as the SPI200 rallies with the US overnight.


AUD Trade Balance 11:30am

EUR German Factory Orders 4pm

JPY BOJ Gov Kuroda Speaks 6:25pm

EUR Final Employment Change and Revised GDP 7pm

GBP BOE Gov Carney Speaks 7pm

EUR Monetary Policy Statement and Main Refinancing Rate 9:45pm

CAD Trade Balance 10:30pm

EUR ECB Press Conference 10:30pm

USD Trade Balance and Unemployment Claims 10:30pm

USD FOMC Member Williams Speaks 3am