The Morning Jumpstart


  • SPI200 (Sep) overnight futures up 41 pts to 6395
  • SP500 up 34.97 pts to 2923.65
  • NASDAQ up 106.82 pts to 8002.81
  • Dow Jones up 249.78 pts to 26,135.79
  • FTSE100 up 72.50 pts to 7189.65
  • DAX30 up 152.63 pts to 11,715.37
  • GOLD futures US Session (December) down $17.40 to $1506.20 an ounce
  • COPPER futures US Session (Comex Sept) up $0.0040 to $2.5990 a pound
  • OIL futures US Session (Nymex Dec) up $1.32 to $56.19 a barrel
  • CRB Index up 0.37 pts to 170.78
  • AUDUSD trading at 0.6764
  • EURUSD trading at 1.1080
  • GBPUSD trading at 1.2132
  • USDJPY trading at 106.6300
  • USD Index (ICE Sept) trading at 98.250 up 0.243

The US continued on where it left off Friday with another solid session into the major Indexes. The positive mood started in the Asian session and flowed over into the European and US sessions. Traders were buoyed by the hopes for stimulus in Europe and China and as the US extended a reprieve to Huawei to do business with US companies. Trump was active on twitter coming into the US session saying China are ready for a trade deal but they are ‘not ready’ to make a deal while also dismissing recession fears. All this gave traders the juice they needed to jump back into riskier assets. The DOW closed up 0.96% while the broader SP500 was up 1.21% and the Nasdaq also ended up 1.35%. In Europe, traders were positive on the back of stimulus to prop up growth in major economies and signs that there may be progress in coming trade talks.

Global Bond yields rose off their lows ahead of the US Federal Reserve’s symposium in Jackson Hole, Wyoming, toward the end of the week, where central bankers could announce key measures to support the global economy. The symposium would be the perfect backdrop for the US Fed Reserve to reset expectations for interest rate cuts to support stocks. Markets are still weighed down by Brexit issues, Hong Kong and Global debt levels so any ‘tweet bomb’ from Trump could bring the sellers back into the action.

The USD moved higher being supported by a selloff into the safe haven Yen. The Euro initially rallied during the European session only to come under pressure into the US session close as the USD moved higher. Buyers will be watching the previous lows at 1.1068 for support. The GBP also fell into the US session as price action backed away from key resistance around the 1.2200 mark. Price will need to hold a higher low above 1.2110 to appease the bulls and take a shot at the resistance zone above current levels. The AUD struggled with selling pressure up at 0.6788 and fell over through the US and European session to hold lower highs as price now looks set to test key support around 0.6750. The USDJPY continued to edge higher as safe haven Yen buyers exited the pair and supported the dollar. Expect to see a test of 106.85 resistance in coming days if the positive sentiment continues.

Gold traded lower as recent buyers locked away some gains in the risk on tone into shares. The positive mood, thanks to potential stimulus, helped to pressure safe haven traders as we see a move below $1500 (in the futures price) on the cards. Oil prices rallied on the back of the positive sentiment and also due to attacks on Saudi Oil installations in Yemen. Copper saw a big move higher a the start of the European session but then gave up most of the gains into the US open. The positive is that the move shows some interest from buyers off support levels around 2.5860 so watching to see if this interest can continue.

Cryptocurrencies edged higher overnight finding some comfort in the stock market rally. Bitcoin is currently trading at $10,685.2 up 3.12% while Ethereum is at $198.24 up 1.70% and Ripple is lagging and trading at $0.27767 down 2.84%.

The ASX200 opened stronger yesterday only to be stuck in a narrow range for the session as buyers and sellers were evenly tentative. The index closed up 61.9 points to 6467.4 with the Info Tech and Energy sectors leading the charge higher while the gold sector saw traders take some risk off the sector ended down 3.09%. Rising stocks outnumbered declining ones by 701 to 461 and 383 ended unchanged.

The ASX200 is expected to open up 10 points as the SPI200 was well contained within a narrow trading range overnight.


AUD Monetary Policy Meeting Minutes 11:30am

EUR German PPI Data 4pm

CAD Manufacturing Sales 10:30pm