The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 7am AEST)

  • SPI200 (Sep) overnight futures down 12 pts to 6540
  • SP500 Closed
  • NASDAQ Closed
  • Dow Jones Closed
  • FTSE100 up 74.76 pts to 7281.94
  • DAX30 up 14.50 pts to 11,953.78
  • GOLD futures US Session (December) up $8.70 to $1538.10 an ounce
  • COPPER futures US Session (Comex Dec) down $0.0210 to $2.5300 a pound
  • OIL futures US Session (Nymex Oct) down $0.33 to $54.77 a barrel
  • CRB Index Closed
  • AUDUSD trading at 0.6716
  • EURUSD trading at 1.0970
  • GBPUSD trading at 1.2068
  • USDJPY trading at 106.2300
  • USD Index (ICE Sept) trading at 98.947 up 0.087

US Indexes were closed for the Labor Day holiday long weekend which meant the market lacked direction from the US. Tariffs were the main topic as traders do not see any resolution in the near term. Trump continues to encourage US companies to look for alternative suppliers to China to reduce their reliance and help the cause while talking up a meeting to be held late September. Traders will be looking to the US central bank easing potentially later this month and see a 97% chance that the US Fed Reserve will cut rates by 25 basis points. In Europe, Indexes closed the session higher in thin trade as manufacturers were boosted by slightly better than expected Manufacturing data out in China and Europe. Defensive stocks were also supported by continued tariff concerns while Miners rallied around the open from a surge in Iron Ore but could not hold the gains into the close as trade war fears continued to weigh on the sector.

The USD moved higher in a quiet session prior to the early close of the US futures markets. The EURO moved lower on weaker economic data and reliance on trade as tensions continue between the US and China. Expectations are for the Euro to continue lower as tariffs continue to constrain growth and traders look towards the ECB for further rate cuts. The GBP was hit hard after PM Boris Johnson called an emergency cabinet meeting and was preparing to call a general election. The increasingly Chaotic run up to Brexit has Pound traders on edge and the pair running lower towards major support around 1.2000 even. The AUD continued to be pressured by trade concerns although did get a lift from the rally in Iron Ore but could not hold onto the gains. The USDJPY initially gapped lower at the start of the trading session Monday morning as traders worried about the new tariffs. The pair then closed the gap as the USD rallied during European trade. The general price action suggests that there is still some safe haven YEN buying to counteract the USD strength and provide some support for the pair.

Gold moved higher during the European session as new tariffs kicked into affect over the weekend and traders sentiment remained fragile. The move up was only contained by the stronger USD. Oil continued to edge lower as demand is expected to weaken if there is another hit to global economic growth. Copper continued to edge lower in a quiet session from further pressure from new tit for tat tariffs.

Cryptocurrencies had a good night as Bitcoin moved back above $10,000 and is currently trading at $10355.2 up 7.11%. Ethereum also pushed higher and is at $179.28 up 5.62% while Ripple followed suit and is trading at $0.26245 up 2.55%.

The ASX200 started the session flat yesterday but then found some sellers around 11:.30am who pushed price lower which held into the close. The Index was down 24.8 points to 6579.4 with the Telcom Services and Energy sectors being the biggest drag on the Index. Falling stocks outnumbered advancing ones by 698 to 552 and 363 ended unchanged.

The ASX200 is expected to open down 10 points as the SPI200 was contained overnight in a quiet session. We may see a contained session again today as traders will be waiting to see the RBA rate statement at 2:30pm.

ECONOMIC DATA OUT TODAY (AEST)

AUD Retail Sales and Current Account 11:30am

AUD Cash Rate and RBA Statement 2:30pm

GBP Construction PMI 6:30pm

EUR PPI Data 7pm

USD ISM Manufacturing PMI 12am

SPI200 INTRADAY LEVELS TO WATCH