The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 7am AEST)

  • SPI200 (Sep) overnight futures down 12 pts to 6581
  • SP500 down 5.11 pts to 2945.35
  • NASDAQ down 26.01 pts to 8005.70
  • Dow Jones up 8.41 pts to 26,727.54
  • FTSE100 up 9.19 pts to 7416.69
  • DAX30 down 65.35 pts to 12,274.57
  • GOLD futures US Session (August) up $22.00 to $1422.10 an ounce
  • COPPER futures US Session (Comex Sept) up $0.0040 to $2.7080 a pound
  • OIL futures US Session (Nymex Aug) up $0.39 to $57.82 a barrel
  • CRB Index up 1.47 pts to 179.99
  • AUDUSD trading at 0.6964
  • EURUSD trading at 1.1399
  • GBPUSD trading at 1.2729
  • USDJPY trading at 107.2800

US markets were mixed overnight as they went into a holding pattern ahead of the G20 meeting later in the week. Traders will be focused on any news headlines that come out of a meeting between the US and China and whether the two countries will work to a resolution or escalate the trade war further. The Fed is happy to hold off on rate cuts for now but see the potential for up to three cuts by year end which may depend on what comes out of Trump and Xi’s meeting at the G20. The DOW closed up 0.03% while the broader SP500 was down 0.17% and the Nasdaq also ended down 0.32%. In Europe, major Indexes were also mixed as traders are unwilling to add risk in an unknown environment.

The USD Index continued the move lower as traders digested interest rate news from the Fed. A weaker USD is expected to see emerging markets thrive as servicing USD debt becomes easier. The Euro continued its march higher to grind up to the 1.1425 zone then potentially 1.1550 where we may expect to see the action really heat up. The GBP saw sellers step into the action after a spike up to 1.2766 which is a key resistance zone. We expect to see some profit taking from recent buyers and then potentially a higher low to build for a run up and through the zone if the USD continues to find weakness. The AUD saw a solid move higher through our local session and then again through the US session as the USD weakened. Buyers are finding comfort in positive commodity indexes but may find headwinds as the RBA is expected to cut rates again. The USDJPY traded in a narrow range and found some buying support around the 107.270 zone. Sellers remain in control as the USD rallies so we may see a break of this minor support zone.

Gold had another solid night to continue to press higher as safe haven buyers stepped up the pressure. Price was helped by a weakening USD and also boosted by Trumps announcement to impose fresh sanctions on Iran. Oil prices continue to be supported by a weaker USD and a potential escalation in tensions between the US and Iran. Price managed to clear out some late buyers through the European session with a move down to 56.75 but then bounced back to end with minor gains. Copper again saw some early selling pressure only to bounce back strong into the US close. We now see the potential for price to hold a higher low above 2.6805 and put the highs under pressure.

Cryptocurrencies edged lower across the board overnight with Bitcoin currently trading at $10935.8 down 1.70%. Ethereum is trading at $309.34 down 2.22% and Ripple is at $0.46381 down 4.07%.

The ASX200 pushed lower from the open yesterday but then managed to fight its way back to finish in positive territory for the session. The index closed up 14.6 points to 6665.4 which sectors relatively contained across the board. Falling stocks outnumbered advancing ones by 727 to 542 and 412 ended unchanged.

The ASX200 is expected to open down 10 points as the SPI200 floundered overnight being unable to continue the days positive finish.

ECONOMIC DATA OUT TODAY (AEST)

JPY Monetary Policy Meeting Minutes 9:50am

JPY BOJ Core CPI 3pm

AUD RBA Assist Gov Bullock Speaks 5:05pm

ALL OPEC Meetings All Day

USD FOMC Member Williams Speaks 10:45pm

USD Consumer Confidence, Richmond Manufacturing Index and New Home Sales 12am

USD Fed Chair Powell Speaks 3am

SPI200 INTRADAY LEVELS TO WATCH