The Morning Jumpstart


  • SPI200 (Sep) overnight futures up 5 pts to 6635
  • SP500 up 13.44 pts to 2993.07
  • NASDAQ up 60.80 pts to 8202.53
  • Dow Jones up 76.71 pts to 26,860.20
  • FTSE100 down 5.78 pts to 7530.69
  • DAX30 down 63.14 pts to 12,373.41
  • GOLD futures US Session (August) up $20.50 to $1421.00 an ounce
  • COPPER futures US Session (Comex Sept) up $0.0660 to $2.6910 a pound
  • OIL futures US Session (Nymex Aug) up $2.44 to $60.27 a barrel
  • CRB Index up 3.46 pts to 184.17
  • AUDUSD trading at 0.6960
  • EURUSD trading at 1.1255
  • GBPUSD trading at 1.2506
  • USDJPY trading at 108.4200
  • USD Index (ICE Sept) at 96.718 down 0.377

US Indexes traded higher across the board overnight as buyers were buoyed by comments from US Fed Reserve Chair Powell. The Central banker gave the market exactly what they wanted to hear in prepared remarks. Powell said the Fed stands ready to ‘act as appropriate’ to support US economic growth. Interest rate bond traders started to factor back in a more aggressive rate cut scenario after the comments. Powell pointed to weakness amid uncertainty over trade disputes as the US takes on the world. The DOW closed up 0.29% while the broader SP500 was up 0.45% and the Nasdaq also ended up 0.75%. In Europe, major Indexes moved lower as any gains on the outlook for a US rate cut were overshadowed by Powells comments on the trade uncertainties affecting global economic growth.

Although traders in the US may be continuing to buy into shares as Indexes hit new all time highs, the question is now whether they can sustain this momentum heading into earnings. The market has come a long way and it may be running out of investors willing to put too much new money in without an indication that earnings will be strong. One point that was highlighted in the remarks was a downturn in US business investment on uncertainty over how long Trumps trade wars with other countries will last.

The USD Index gave up some of its recent gains to move lower after the Fed confirmed its interest rate outlook. Buyers had to reverse positions on the dollar as they are now potentially back to looking at an ‘aggressive’ stance from the Fed on interest rate cuts. The Euro and the GBP both lifted as the USD came under fire as traders had to reposition themselves back into a short Dollar bias. The AUD spiked on Powells comments to clear out some of the recent selling pressure into the pair. The USDJPY was hit and lost ground as the USD fell.

Gold bugs were back into the thick of the action as the precious metal rallied, again becoming an ideal investment to hedge against a falling dollar. Oil had a big night to break back above the $60 a barrel level on supply concerns after US inventory data came out weaker than expected. Rumours that the US may be preparing for air strikes on Iranian targets in Syria may also add to the fire. Copper managed a strong rally off yesterdays lows which started in the Asian session and continued right through to the close of the US. The price action took out a key level at 2.6890 which may give the bulls further confidence.

Cryptocurrencies were down overnight as the sellers came in to lock in some recent gains. Bitcoin is currently trading at $11857.5 down 5.76% while Ethereum is at $287.95 down 6.58% and Ripple is at $0.35740 down 10.10%.

The ASX200 opened strong yesterday to follow on from a good night on the SPI200 but faded into the close. The index ended the session up 24.1 points to 6689.8. The Consumer Staples and Info tech led the charge higher while Materials, Metals and Mining and the Resources sectors lagged. Rising stocks outnumbered declining ones by 650 to 529 and 377 ended unchanged.

The ASX200 is expected to open up 5/10 points after the SPI200 held minor higher levels in a positive US session.


AUD MI Inflation Expectations 11am

AUD Home Loans 11:30am

EUR German Final CPI 4pm

GBP BOE Financial Stability Report 7:30pm

EUR ECB Monetary Policy Meeting Accounts 9:30pm

USD CPI Data and Unemployment Claims 10:30pm

AUD RBA Assist Gov Debelle Speaks 11:10pm

USD Fed Chair Powell Testifies 12am