The Morning Jumpstart


  • SPI200 (Sep) overnight futures up 41 pts to 6395
  • SP500 up 41.08 pts to 2888.68
  • NASDAQ up 129.38 pts to 7895.99
  • Dow Jones up 306.62 pts to 25,886.01
  • FTSE100 up 50.14 pts to 7117.15
  • DAX30 up 150.07 pts to 11,562.74
  • GOLD futures US Session (December) down $7.60 to $1523.60 an ounce
  • COPPER futures US Session (Comex Sept) down $0.0080 to $2.5870 a pound
  • OIL futures US Session (Nymex Sep) up $0.40 to $54.87 a barrel
  • CRB Index up 0.37 pts to 170.41
  • AUDUSD trading at 0.6779
  • EURUSD trading at 1.1090
  • GBPUSD trading at 1.2149
  • USDJPY trading at 106.3800
  • USD Index (ICE Sept) trading at 98.062 up 0.057

The US followed on from a positive European session to open higher and hold on to the gains into the close. Markets surged higher on expectations that the ECB will cut interest rates and the German government would be prepared to ditch its balanced budget rule and take on new debt to counter a possible recession. Positive US building data also helped the lift the sentiment into the weekend. The DOW closed up 1.20% while the broader SP500 was up 1.44% and the Nasdaq also ended up 1.67%. In Europe, traders were buoyed by the news and also as German Bond yields rose taking some heat out of the recent risk aversion move lower.

The US is preparing to extend a license for 90-days which would allow Huawei to continue business with US companies to service existing customers. This may be another sign that Trump has recognized the impact the trade war is having on local companies. US economic advisor Larry Kudlow on Sunday denied that the trade war with China was doing damage to the US. They also argued against concerns that economic growth may be faltering and saw little risk of a recession despite the volatile week of trading.

The USD was higher on the back of news of potential ECB stimulus and the bullish sentiment was helped by a jump in US homebuilding permits to a seven month high. The Euro was initially weaker on news that the ECB is looking at stimulus and cutting rates to help to lift European growth but managed to pair back the losses into the US open on the news that Germany may take on more debt. The GBP rallied through the Asian and European session and managed to hold onto the gains into the US close. The currency is approaching key resistance around the 1.2200 mark which is where sellers previously started the move lower off a lower high. The AUD continued to find support after recent stronger than expected local employment data and a potential positive turn in the trade war. The USDJPY continued to hold a higher low as buyers stepped in around 106.200.

Gold moved lower as share markets rallied and traders locked away some gains as risk sentiment improved. We are now watching for the 1500 zone to come under pressure which would mean that Gold bulls may be looking at longer term corrective price action and a squeeze on the bulls. Oil prices were also buoyed by the positive sentiment although did give up earlier gains from above $55.50 a barrel. Copper was stuck in a narrow range with support in around 2.5850 and sellers happy to enter up at 2.6020/2.6060.

Cryptocurrencies were higher over the weekend as they found some strength off the lows. Bitcoin is currently trading at $10356.7 up 2.66% while Ethereum is doing well currently trading at $194.57 up 6.26% and Ripple is at $0.28663 up 8.39%.

The ASX200 was range bound Friday as the Index swung between minor gains and losses as as traders still see global headwinds although are on the look out for some bargains. In the end the index ended down 2.6 points to 6405.5 with Financials holding up nicely while the Telcoms and Gold sectors came under pressure. Falling stocks outnumbered advancing ones by 660 to 508 and 368 ended unchanged.

The ASX200 is expected to open up 40/45 points after the US put in a solid end to the week to drag the SPI200 higher.


JPY Trade Balance 9:50am

EUR Current Account 6pm

EUR Final CPI Data 7pm