The Morning Jumpstart


  • SPI200 (Sep) overnight futures up 47 pts to 6437
  • SP500 up 37.03 pts to 2881.77
  • NASDAQ up 107.23 pts to 7833.27
  • Dow Jones up 311.78 pts to 26,029.52
  • FTSE100 down 52.16 pts to 7171.69
  • DAX30 down 90.55 pts to 11,567.96
  • GOLD futures US Session (December) up $9.90 to $1486.40 an ounce
  • COPPER futures US Session (Comex Sept) up $0.0210 to $2.5650 a pound
  • OIL futures US Session (Nymex Sep) down $1.24 to $53.45 a barrel
  • CRB Index down 0.95 pts to 170.54
  • AUDUSD trading at 0.6762
  • EURUSD trading at 1.1202
  • GBPUSD trading at 1.2166
  • USDJPY trading at 106.4300
  • USD Index (ICE Sept) at 97.400 up 0.092

US stock Indexes fought back to bounce off the previous lows and make back some of the losses from the previous session. The main driver for the recovery and change in sentiment came after China stepped in to stabilise the Yuan. This came after the US Treasury Department labeled China a currency manipulator as they let the Yuan slide…bit of the ‘pot calling the kettle black’. The Chinese can not afford to see the Yuan fall too far as their cost of debt will increase. The fall will help exports but not enough to cover funds needed to pay interest costs on USD holdings. The DOW bounced back to close up 1.21% while the broader SP500 was up 1.30% and the Nasdaq also ended up 1.39%. In Europe, markets extended their slide lower into the close as they gave up earlier gains on concerns that the end to the trade conflict is far away.

The USD edged higher to gain back some of the lost ground from the previous session. The dollar benefited from a fall in safe haven currencies like the Yen and Swiss Franc and also as markets saw some relative calm. Traders still remain nervous which supports safe haven assets. The Euro fell away from the highs through the Asian and European session as traders locked away some of the gains and China supported the Yuan to take some heat out of the currency market. The GBP continued to be relatively range bound as sellers shorted spikes and buyers supported dips. Minor support comes in now at 1.2140. The AUD came under pressure as sellers reacted to the RBA statement which opened the door to further rate cuts. Highs held around 0.6795 before sellers piled in on dollar strength and pushed price down to support around 0.6750. The Aussie is expected to continue the longer term weakness as rates come under pressure and the trade war looks far from over. The USDJPY saw a sharp rally at the start of the ASX session and managed to hold around the highs as YEN safe haven buyers eased out of the action after China moved to support the Yuan.

Gold continued to find buying support to end on the highs as the increased volatility in markets drives traders out of shares to the safety of the precious metal. This is interesting as it shows a strong safe haven bid and a discount of Trumps news that they are meeting China to sort out trade issues. Oil played catchup to weakness in the share market and was pressured by some strength into the Dollar ahead of US inventories out tonight which are expected to show a further draw on stockpiles which should provide some support. Copper managed to fight back off previous session lows but looks extended at current levels. Buyers are still adverse to adding too much risk into the commodity as the trade war is expected to continue into 2020. Iron Ore edged lower overnight.

Cryptocurrencies edge back off yesterdays highs as US markets rally to take some heat out of the recent selloff. Bitcoin is currently trading at $11656 down 0.65% while Ethereum is at $225.20 down 2.62% and Ripple is at $0.31073 down 3.75%.

The ASX200 again came under pressure yesterday right from the open and held the lows into the close to end down 162.2 points to 6478.1. All sectors ended the day in the red with Info Tech leading the charge and Healthcare hot on its heals. The RBA held rates at 1% as expected but may be gearing up for another cut next month. Falling stocks outnumbered advancing ones by 1079 to 226 and 310 ended unchanged.

The ASX200 is expected to open up 48 points as the SPI200 fights back from the lows on a solid bounce in the US.


AUD Home Loans 11:30am

NZD Official Cash Rate and RBNZ Rate Statement 12pm

EUR German Industrial Production 4pm

USD Crude Oil Inventories 12:30am

AUD Assist Gov Bullock Speaks 7:30am