The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 7:15am AEST)

  • SPI200 (Sep) overnight futures down 9 pts to 6588
  • SP500 up 0.53 pts to 3014.30
  • NASDAQ up 14.04 pts to 8258.19
  • Dow Jones up 27.13 pts to 27,359.16
  • FTSE100 up 25.75 pts to 7531.72
  • DAX30 up 64.02 pts to 12,387.34
  • GOLD futures US Session (August) up $3.70 to $1415.90 an ounce
  • COPPER futures US Session (Comex Sept) up $0.0210 to $2.7150 a pound
  • OIL futures US Session (Nymex Aug) down $0.91 to $59.30 a barrel
  • CRB Index down 1.28 pts to 183.08
  • AUDUSD trading at 0.7038
  • EURUSD trading at 1.1258
  • GBPUSD trading at 1.2514
  • USDJPY trading at 107.9200
  • USD Index (ICE Sept) at 96.567 up 0.143

US Indexes managed to grind out some minor gains as earnings kicked off with Citigroups report. Traders will be eyeing earnings from JPMorgan, Goldman Sachs and Wells Fargo later in the week. Banks came under pressure even as Citigroups results came in positive so we expect to see any failure to meet earnings expectations with selling pressure. The DOW closed up 0.10% and the broader SP500 was up only 0.02% and the Nasdaq also ended up 0.17%. In Europe, major Indexes ended the session higher as traders were buoyed by expectations for further easing of monetary policy from the ECB after Germany’s Economic Ministry pointed to weakness in the manufacturing and services sectors, suggesting a subdued second quarter for Europe’s largest economy.

Markets were also buoyed overnight by data from China that showed factory output and retail sales beat expectations which signals that stimulus from the Chinese government is working. Trump pointed to economic growth which slowed to 6.2% in the second quarter as evidence that US tariffs were having a ‘major effect’ and warned that Washington may pile on more pressure as trade talks stall.

The USD Index edged slightly higher overnight to pressure the major crosses and see some minor profit taking in a relatively quiet session. Traders will be focusing on central banks policy decisions next week. The Euro fell away into the close after retesting previous minor highs around 1.1285. Price may be consolidating between the 1.1242 and 1.1280/85 zone which may be a good sign for the bulls. The GBP also traded lower through the European session and held the lows into the US close. The AUD faired better as buyers pushed price higher after China’s data release during the day session. The USDJPY was unchanged as price hung around the lows with any buying met with continued selling pressure.

Gold edged out further gains as buyers gain confidence that a weaker USD will drag the precious metal higher. Gold is showing some positive signs that a run higher may be on the cards as price holds minor higher levels. Oil traded lower as buying pressure runs out of steam and news of potentially lower output in the Gulf of Mexico take hold. Copper lifted yesterday after China’s data release and managed to hold onto most of the gains into the US close.

Cryptocurrencies floundered overnight after the recent selloff as Bitcoin is currently trading at $10798.9 up 1.50% while Ethereum is at $231.13 down 2.63% and Ripple is at $0.31311 down 0.46%.

The ASX200 started the session on the back foot yesterday and held the losses into the close. In the end the Index finished down 43.5 points to 6653 as traders went risk off. The Info Tech, Telecom Services and Utilities sectors took the brunt of the selling pressure while Gold ended in the green. Falling stocks outnumbered advancing ones by 673 to 506 and 370 ended unchanged.

The ASX200 is expected to open down 6 points as the SPI200 continued to trade heavy overnight even as the US ended in the green. Bulls will be watching 6640 on the ASX200 to see of the level can hold.

ECONOMIC DATA OUT TODAY (AEST)

NZD CPI Data 8:45am

AUD Monetary Policy Meeting Minutes 11:30am

GBP Average Earnings Index, Claimant Count and Unemployment Rate 6:30pm

EUR German ZEW Economic Sentiment and Trade Balance 7pm

USD FOMC Member Bowman Speaks 10:15pm

USD Retail Sales Data 10:30pm

USD Fed Chair Powell Speaks 3am

USD FOMC Member Evans Speaks 5:30am

SPI200 INTRADAY LEVELS TO WATCH