The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 7am AEST)

  • SPI200 (Jun) overnight futures up 13 pts to 6566
  • SP500 down 1.01 pts to 2885.72
  • NASDAQ down 0.60 pts to 7822.57
  • Dow Jones down 14.17 pts to 26,048.51
  • FTSE100 up 22.91 pts to 7398.45
  • DAX30 up 110.43 pts to 12,155.81
  • GOLD futures US Session (August) up $1.30 to $1330.60 an ounce
  • COPPER futures US Session (Comex July) up $0.0070 to $2.6690 a pound
  • OIL futures US Session (Nymex July) down $0.20 to $53.06 a barrel
  • CRB Index up 0.80 pts to 174.87
  • AUDUSD trading at 0.6961
  • EURUSD trading at 1.1328
  • GBPUSD trading at 1.2719
  • USDJPY trading at 108.5300

US stock Indexes broke their recent winning streak and ended flat for the session. Traders took time to pause and assess recent US/China trade rhetoric which is still an ongoing area for concern. The concern is still that things could easily escalate as Trump talks up further tariffs if there is no progress with China talks. The Broader SP500 is just 2% from all time highs set in May which means bulls have made back the losses from negative China and Mexico trade news. The DOW closed down 0.05% while the broader SP500 was down 0.03% and the Nasdaq ended down 0.01%. In Europe, major Indexes again ended higher as the German DAX played catchup after being closed for a long weekend.

US Bond yields were slightly higher after data showed rising producer prices in May for the second consecutive month which pointed to a steady pickup in inflationary pressure. Traders are still factoring in a rate cut in July and then up to two further cuts for the year but if we see better than expected inflationary data, expectations may change.

The USD ended the session relatively flat against a basket of major currency pairs. The Euro edged higher as buyers rejected lows and look to be holding a higher low for a potential run up through 1.1350. The GBP also edged higher although is finding some selling pressure around 1.2730. The AUD was traded in a narrow range overnight to end flat for the session. The USDJPY reversed earlier gains with safe haven YEN buyers stepping in as the DOW fell around 200 pts from early session highs into the close.

Gold edged lower as buyers locked away some of the gains from the recent move higher. Gold did bounce off lows into the US close as the DOW fell. Oil ended another choppy session relatively unchanged as traders try to work out future demand dynamics. Copper rallied through Asian and European trade to highs above 2.7000 but then fell away in US trade to end just above the previous sessions close. Bulls are still weighing up trade news before going too heavy into the commodity.

Cryptocurrencies held their ground in a relatively flat session as Bitcoin holds around $7903.0 down 0.20%. Ethereum is trading at $244.35 up 0.43% and Ripple is currently at $0.39285 down 0.38%.

The ASX200 opened strong and kept going into the close to end the session up 102.4 points to 6546.3. The ASX200 now looks set to test the all time highs as Chinese stocks powered higher on reports of government funding support for major investment projects. Healthcare was the biggest gaining sector followed closely by Industrials while Utilities and Gold ended lower. Rising stocks outnumbered declining ones by 695 to 549 and 413 ended unchanged.

The ASX200 is expected to open up 10 points after the SPI200 eased back of its highs into the US close.

ECONOMIC DATA OUT TODAY (AEST)

AUD RBA Assist Gov Kent Speaks 9:25am

AUD Westpac Consumer Sentiment 10:30am

CNY CPI and PPI Data 11:30am

EUR ECB President Draghi Speaks 6:15pm

AUD RBA Assist Gov Ellis Speaks 7pm

USD CPI Data 10:30pm

USD Crude Oil Inventories 12:30am

USD Federal Budget Balance 4am

SPI200 INTRADAY LEVELS TO WATCH