The Morning Jumpstart


  • SPI200 (Sep) overnight futures down 9 pts to 6463
  • SP500 up 18.78 pts to 2887.94
  • NASDAQ up 29.94 pts to 7856.88
  • Dow Jones up 258.20 pts to 26,036.10
  • FTSE100 up 25.13 pts to 7114.71
  • DAX30 down 29 pts to 11,701.02
  • GOLD futures US Session (December) down $3.20 to $1548.60 an ounce
  • COPPER futures US Session (Comex Dec) up $0.0150 to $2.5680 a pound
  • OIL futures US Session (Nymex Oct) up $0.97 to $55.90 a barrel
  • CRB Index up 1.50 pts to 171.20
  • AUDUSD trading at 0.6735
  • EURUSD trading at 1.1080
  • GBPUSD trading at 1.2213
  • USDJPY trading at 106.0400
  • USD Index (ICE Sept) trading at 98.165 up 0.258

US Indexes bounced back from the previous sessions weakness as traders put risk back on into the share market as concerns for a recession eased for now. The financial sector found some buying support along with energy as demand for Oil helped subdue recession anxiety. Traders are still battling between a relatively healthy US economy and concerns for slowing growth and were happy to put their faith in the economy overnight. Concerns still remain for the trade war as the US Trade Representative’s office reaffirmed President Trumps plans to impose an additional 5% tariff on $300 billion of Chinese imports starting on Sep 1st and Dec 15th. The DOW closed up 1.00% while the broader SP500 was up 0.65% and the Nasdaq ended up 0.38%. In Europe, Indexes were mixed as the DAX ended lower while the FTSE managed to gain some ground as European markets were buoyed into the close with a rally from the US on the open.

Demand for US Bonds remained strong as the share market rallied with long dated 30-years touching all time low yields. The yield curve remained inverted with 10-year note yields trading lower than the 2-year. It is becoming increasingly difficult for investors to work out which way to turn as weakness in bonds and strength in safe havens pointing to risk-aversion while shares continue to be bought on sharp dips. The rallies may just be seen by the bears as an opportune time to close out longer term buy positions.

The USD was again stronger in a session that saw buyers continually edge price higher as recession fears took a back seat. The Euro continued its move lower which began Monday morning as the USD pushed higher. The GBP slipped after British Prime Minister Boris Johnsons moved to limit parliaments opportunity to derail his Brexit plans. Westminster will be shut down for around a month and open Oct 14th which means less time the opposition to Brexit has to block a no-deal Brexit. The AUD could not hold support at 0.6750 as trade war concerns continue with new tariffs set to be implemented soon which will do nothing to ease the trade war tension. The USDJPY saw a rally as USD gained ground and safe haven trader eased out of the Yen to take some gains off the table.

Gold saw some minor selling pressure from profit taking as equities rallied but safe haven buyers seemed to remain firm as price is consolidating between highs around $1555 and lows around $1543. Oil had another good session to help to buoy the share market as US inventory data showed a more negative than expected number as demand rises. Copper saw a choppy session as price pushed lower through European trade only to whip around and make back the lost ground into the US close.

Cryptocurrencies were hit overnight as bitcoin fell back below the $10000 level dragging other pairs with it. The move was hard and fast and was attributed to potentially one big sell order which triggered sell stops to cause the dump. Bitcoin is currently trading at $9683.8 down 4.93% while Ethereum is at $171.74 down 8.35% and Ripple is at $0.25376 down 5.76%.

The ASX200 opened flat yesterday but then spent the session grinding its way higher to close up 29.4 points to 6500.6. The Info Tech sector was again the star performer followed closely by Gold and Metals and Mining while Telecom services were down for the day. Rising stocks outnumbered declining ones by 665 to 502 and 365 ended unchanged.

The ASX200 is expected to open relatively flat as the SPI200 closed the overnight session around where it started.


NZD ANZ Business Confidence 11am

AUD Private Capital Expenditure 11:30am

EUR German Prelim CPI All Day

EUR German Unemployment Change 5:55pm

CAD Current Account 10:30pm

USD Prelim GDP, Goods Trade Balance and Unemployment Claims 10:30pm

USD Pending Home Sales 12am