The Morning Jumpstart


  • SPI200 (Sep) overnight futures down 86 pts to 6400
  • SP500 down 75.84 pts to 2847.11
  • NASDAQ down 239.62 pts to 7751.77
  • Dow Jones down 623.34 pts to 25,628.90
  • FTSE100 down 33.20 pts to 7094.98
  • DAX30 down 135.53 pts to 11,611.51
  • GOLD futures US Session (December) up $29.10 to $1537.60 an ounce
  • COPPER futures US Session (Comex Oct) down $0.0280 to $2.5375 a pound
  • OIL futures US Session (Nymex Oct) down $1.18 to $54.17 a barrel
  • CRB Index down 1.71 pts to 168.61
  • AUDUSD trading at 0.6756
  • EURUSD trading at 1.1144
  • GBPUSD trading at 1.2266
  • USDJPY trading at 105.3900
  • USD Index (ICE Sept) trading at 97.550 down 0.514

US Indexes took a beating Friday night as trade war tensions spiked and investors ran for cover. China announced tariffs on $75 Billion of US goods which triggered a response from Trump in a twitter rampage ordering ‘American Companies to immediately start looking for an alternatives to China’. This caused traders to expect the worst and a major escalation in the trade tensions. After the close Trump tweeted that the US would raise tariffs on $250 billion of imports from 25% to 30% beginning Oct 1st. The US will also raise the tariffs from 10% to 15% for the additional $300 Billion on Sept 1st. The DOW closed down 2.37% while the broader SP500 was down 2.59% and the Nasdaq ended down 3.00%. In Europe, Indexes did not to see the full brunt of the US meltdown so we expect to see price play catchup in tonights session.

Major market Indexes have opened weaker than Fridays close while Gold spikes up another 15/20 dollars. The session is going to be loaded with fear driven action. The US Fed said on Friday that there is no rule book for the trade war and fitting trade policy uncertainty into the framework is a new challenge. Trump over the weekend continued his ‘war of words’ on Powell saying that he is ‘not happy with Jay Powell’. He also said that he would not try to stop Powell if he offered to resign.

The USD moved sharply lower as Powell signals that the Fed will do what is needed to support the economy while also mentioning downside risks which gave the markets some relief. The Euro spiked hard on the increase in trade tensions and drop in the Dollar as price pushed up out of its recent trading range. Price has continued to find buyers on the open this morning. The GBP also moved higher as buyers reacted to trade war news but did seem more contained as Brexit issues have not gone away. The AUD continued to come under pressure on trade war news and has opened lower today through lows at 0.6736. The next stop is the spike low at 0.6677 from August 7th. The USDJPY saw safe have YEN buying and dollar selling drive price straight down and has continued the move on the open today. Markets will come under pressure further as traders potentially look to hoard safe haven assets.

Gold had a big night as safe haven traders flocked to the precious metal as the US went into meltdown mode. Oil was hit as traders see further downside due to a prolonged trade war and weaker demand. Copper found sellers to drive price lower through support and is now set to potentially target 2.4625 as there seems no resolution to trade tensions in the near future.

Cryptocurrencies were knocked about as shares markets came under fire. Bitcoin was down Friday and continued to feel the pressure over the weekend. Bitcoin is currently trading at $10004.8 down 0.63% while Ethereum is at $184.33 down 2.18% and Ripple is trading at $0.26667 down 1.49%. Expecting Bitcoin to move back under 10,000 and drag other cryptos with it.

The ASX200 saw a choppy session Friday to end the trading week as the Index moved between gains and losses. In the end it ended in the green up 21.3 points to 6523.1. The Gold sector was the biggest drag in the index with Gold Road Resources ending down over 17%. The Telcom Services sector ended the day with the biggest gains while Consumer Discretionary, Industrials and Utilities put in a positive effort. Rising stocks outnumbered declining ones Friday by 594 to 583 and 346 ended unchanged.

The ASX200 is expected to open down 85/90 points as the SPI200 caves in Friday night to end the week on a low note. Prices may come under fire further as the morning FX and overnight US markets point to further weakness from Fridays close.


NZD Trade Balance 8:45am

GBP Bank Holiday

EUR German Ifo Business Climate 6pm

ALL G7 Meetings Day 3

USD Durable Goods Orders Data 10:30pm

USD FOMC Member Bullard Speaks 12am