The Morning Jumpstart


  • SPI200 (Sep) overnight futures up 1 pts to 6616
  • SP500 down 14.46 pts to 2975.95
  • NASDAQ down 63.41 pts to 8098.38
  • Dow Jones down 115.98 pts to 26,806.14
  • FTSE100 down 3.87 pts to 7549.27
  • DAX30 down 25.02 pts to 12,543.51
  • GOLD futures US Session (August) down $2.50 to $1397.60 an ounce
  • COPPER futures US Session (Comex Sept) down $0.0030 to $2.6580 a pound
  • OIL futures US Session (Nymex Aug) up $0.06 to $57.57 a barrel
  • CRB Index down 0.09 pts to 180.68
  • AUDUSD trading at 0.6973
  • EURUSD trading at 1.1215
  • GBPUSD trading at 1.2516
  • USDJPY trading at 108.7100
  • USD Index (ICE Sept) at 96.972 up 0.082

US Indexes continued on from Fridays action as sellers pushed markets lower in a risk off tone. The key driver was again for expectations of a less aggressive Fed Reserve on interest rate cuts after stronger than expected jobs data Friday. Apple dragged the Nasdaq lower after an analyst downgrade while Boeing also came under pressure. The DOW closed down 0.43% while the broader SP500 was down 0.48% and the Nasdaq ending down 0.78%. In Europe, major Indexes also traded lower being weighed down by the banking sector as Deutsche Bank announced that it would cut 18,000 jobs around the world in a restructuring plan.

The USD Index continued to edge higher as traders will be focused on Powells testimony to Congress tonight. Traders will be looking for clues regarding the likelihood of a rate cut from the US central bank when it meets at the end of the month. The Euro and the GBP continued to edge lower as the USD rallied. The GBP continued to be driven lower after recent poor economic data and a rise in expectations that the BOE will cut interest rates. The AUD moved lower and looks set to extend down to test lows around 0.6960. The USDJPY continued up on the back of USD strength as traders reposition themselves ahead of Powells testimony.

Gold continued lower as traders await further news on interest rates and the US dollar. Safe haven buyers are happy to stay on the sidelines for now to see if price can hold around the 1400 mark. The bulls will be looking for the Fed to remain aggressive on rate cuts to pressure the dollar. Oil ended relatively flat after gains from an initial rally to 58.50 were given back into the close. We expect to see further pressure to the upside on Oil as tensions with Iran increase as they breach a cap for Uranium Enrichment set by a landmark 2015 nuclear deal. Iran said that they passed the 3.6% cap and may enrich at even higher levels. Copper found some buyers early in the European session only to see the gains given back into the start of the US session. Although buyers gave back the gains, it is a good sign that they are starting to step back into the action and trying to build support.

Cryptocurrencies were led higher with a solid rally in Bitcoin which is currently trading at $12228.5 up 6.18%. Ethereum is trading at $310.11 up 1.21% while Ripple is lagging as it trades at $0.39948 up 0.44%.

The ASX200 opened weaker yesterday and never looked back to end the day down 79.1 points to 6672.2. All sectors were weaker with Utilities, Industrials and Healthcare bearing the brunt of the selling pressure. Asia also came under fire after US jobs data points to a potentially less aggressive Fed on interest rates. Falling stocks outnumbered advancing ones by 660 to 542 and 385 ended unchanged.

The ASX200 is expected to open up 5 points as the SPI200 held its ground overnight as the US pushed lower.


AUD NAB Business Confidence 11:30am

USD Fed Chair Powell Speaks 10:45pm

USD FOMC Member Bullard Speaks 12:10am

USD FOMC Member Quarles Speaks 4am