The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 7am AEST)

  • SPI200 (Sep) overnight futures up 1 pts to 6717
  • SP500 up 14.09 pts to 3019.56
  • NASDAQ up 70.10 pts to 8321.50
  • Dow Jones down 79.22 pts to 27,269.97
  • FTSE100 down 55.40 pts to 7501.46
  • DAX30 up 32.15 pts to 12,522.89
  • GOLD futures US Session (December) up $3.80 to $1425.50 an ounce
  • COPPER futures US Session (Comex Sept) up $0.0110 to $2.7110 a pound
  • OIL futures US Session (Nymex Sep) down $0.95 to $55.82 a barrel
  • CRB Index down 0.81 pts to 178.22
  • AUDUSD trading at 0.6976
  • EURUSD trading at 1.1140
  • GBPUSD trading at 1.2484
  • USDJPY trading at 108.1500
  • USD Index (ICE Sept) at 97.362 down 0.056

US Indexes were mixed overnight as the DOW was dragged down by weaker than expected earnings from Boeing and Caterpillar while the broader SP500 pushed up to record closing highs. The earnings results show the uneven affect of tariffs on the market as companies with a global presence suffer. On trade news, top US and Chinese negotiators will meet next week to resume talks and attempt to end a year long trade war. The DOW closed down 0.29% while the broader SP500 was up 0.47% and the Nasdaq also ended up 0.85%. In Europe, the DAX was up while the FTSE moved lower on the prospect of an uncertain upcoming Brexit. Commodity stocks came under pressure as Iron Ore prices in China fell.

US economic data out overnight continued to show weakness with manufacturing activity slowing to a near 10-year low in early July and new home sales, although rebounding, were revised lower for the previous three months. In the short term, this may cap the USD rise.

The USD Index was relatively unchanged against major currency pairs to trade in a narrow range ahead of the ECB meeting tonight and the US Fed Reserve next week. The Euro pushed lower on weak economic data that had traders expectations increase for a rate cut as early as this week from the ECB. The GBP found some buyers for a squeeze on recent sellers to move higher after the new PM Johnson promised to lead Britain out of the EU and warned that if the EU refused to negotiate, there would be a no-deal Brexit. The AUD came under pressure right from the start of the Aussie session yesterday on uninspiring PMI data only to end near the lows into the close of the US session. The USDJPY was under pressure during the Asian and European sessions only to bounce back through the US session. Buyers may continue to support dips until the USD gets further direction.

Gold rallied through the European session and again late into the US session as buyers supported dips and higher levels. The precious metal may be seeing a resurgence in safe haven buying as a no-deal Brexit looks likely and as Global growth slows. Oil came under fire from the start of the US session as global jitters had traders concerned for demand. Weaker than expected US inventory data could not provide support but with the savageness of the spike down into previous lows, we expect to see some bargain hunting. Copper had a relatively contained session as buyers edged price higher and recent sellers locked away some gains.

Cryptocurrencies came under pressure overnight as Bitcoin fell back below the 10000 mark and is currently trading at $9719.0 down 4.68%. Ethereum fared better and is trading at $215.45 down 0.60% while Ripple is slightly higher trading at $0.31638 up 0.77%.

The ASX200 opened up strong yesterday to follow on from a positive overnight session and buyers held the gains into the close. The index ended up 52.1 points to 6776.7 as a test off all time highs are well and truly in sight now. The Telcom, Industrials and Financials sectors were the best performers while Metals and Mining and the Gold sector lagged. Rising stocks outnumbered declining ones by 701 to 511 and 353 ended unchanged.

The ASX200 is expected to open flat as the SPI200 opened and closed the overnight session around the same level.

ECONOMIC DATA OUT TODAY (AEST)

AUD RBA Gov Lowe Speaks 1:05pm

EUR Spanish Unemployment Rate 5pm

EUR German Ifo Business Climate 6pm

EUR Main Refinancing Rate and Monetary Policy Statement 9:45pm

EUR ECB Press Conference 10:30pm

USD Core Durable Goods Orders, Trade Balance and Unemployment Claims 10:30pm

SPI200 INTRADAY LEVELS TO WATCH