The Morning Jumpstart


  • SPI200 (Sep) overnight futures down 4 pts to 6617
  • SP500 up 27.72 pts to 2954.18
  • NASDAQ up 64.02 pts to 8051.34
  • Dow Jones up 249.17 pts to 26,753.17
  • FTSE100 up 20.90 pts to 7424.44
  • DAX30 up 46.86 pts to 12,355.39
  • GOLD futures US Session (August) up $43.50 to $139230 an ounce
  • COPPER futures US Session (Comex Sept) up $0.0300 to $2.7110 a pound
  • OIL futures US Session (Nymex July) up $2.89 to $56.65 a barrel
  • CRB Index up 3.19 pts to 178.63
  • AUDUSD trading at 0.6924
  • EURUSD trading at 1.1291
  • GBPUSD trading at 1.2704
  • USDJPY trading at 107.2800

In the US, rate cut excitement had the bulls chasing the market higher as the broader SP500 hit new all time highs. US 10-year Bond yields dipped below 2% as traders digest potential rates cuts for the year. The DOW closed up 0.94% while the broader SP500 was up 0.95% and the Nasdaq ended up 0.80%. In Europe, major Indexes moved up as the BOE held rates steady at 0.75% while slashing second quarter growth forecasts to zero. The BOE have been threatening a rate rise but it now seems that the more likely course is down after citing rising risks to the global economy.

Major central banks are now starting to show their collective concerns for global growth as they drop hints of additional easing. With trade wars the main driver for growth concerns, focus will be on next weeks G20 meeting and any positive development between the US and China.

The USD Index continued the move down on lower interest rate expectations and as traders shifted bias to lower levels. The Euro is on a charge higher and targeting previous highs up around 1.1345. Longer term, the higher low around 1.1180 could lead to a short squeeze and push to the 1.1560 resistance zone. The GBP also gained through the Asian session but did find some sellers after the BOE adjusted their growth outlook. Price did bounce back through the US session and looks set to continue the march higher to 1.2750. The AUD moved up and is consolidating the highs. The action looks set to continue as there is a lot of adjustments being made for a weaker USD. The USDJPY continues to come under fire as the Bank of Japan kept monetary policy steady but talked up the potential for further stimulus as global risks cloud the economic outlook.

Gold rocketed higher in Asian trade and continued to push to highs during the US session on USD weakness. Aussie gold also surged higher although prices are very extended at current levels but are holding the highs with the bulls out in force. We should see another good day for Aussie gold miners. Oil prices surged on news that Iran shot down a US military drone which raised fears of a confrontation between Tehran and Washington. Copper also joined in the party on USD weakness and held higher lows on the move up.

Cryptocurrencies had another solid night to move higher with Bitcoin again leading the way. Bitcoin is currently trading at $9537.1 up 4.04% while Ethereum is strong trading at $272.18 up 1.66% and Ripple is at $0.42981 down 0.60%.

The ASX200 opened up relatively flat yesterday but then picked up where it left off the previous session to rally into the close. The index ended up 39.3 points to 6687.4 as the Gold sector ended up over 6% on the day. Aussie Gold smashed through the $2000 mark trading up over $40 early in the session hitting highs around $2018. Rising stocks outnumbered declining ones by 622 to 617 and 401 ended unchanged.

The ASX200 is expected to open down 5 points after the SPI200 could not kick on with the US overnight. Watching for the buying strength to continue on the ASX200 and for a solid end to the week to bring all time highs into range next week.


AUD Flash Manufacturing and Flash Services PMI 9am

EUR French Flash Services and Manufacturing PMI 5:15pm

EUR German Flash Services and Manufacturing PMI 5:30pm

EUR Flash Services and Manufacturing PMI 6pm

CAD Retail Sales Data 10:30pm

GBP MPC Member Tenreyro Speaks 10:30pm

USD Flash Services and Manufacturing PMI 11:45pm

USD FOMC Member Brainard Speaks 2am