The Morning Jumpstart


  • SPI200 (Sep) overnight futures up 19 pts to 6555
  • SP500 up 31.51 pts to 2937.78
  • NASDAQ up 102.72 pts to 7976.88
  • Dow Jones up 237.45 pts to 26355.47
  • FTSE100 up 43.07 pts to 7311.26
  • DAX30 up 114.18 pts to 12,025.04
  • GOLD futures US Session (December) up $6.20 to $1562.10 an ounce
  • COPPER futures US Session (Comex Dec) up $0.0670 to $2.5950 a pound
  • OIL futures US Session (Nymex Oct) up $2.10 to $56.04 a barrel
  • CRB Index up 3.51 pts to 172.70
  • AUDUSD trading at 0.6796
  • EURUSD trading at 1.1035
  • GBPUSD trading at 1.2253
  • USDJPY trading at 106.4100
  • USD Index (ICE Sept) trading at 98.403 down 0.546

US Indexes continued the merry-go-round action and made back all the losses from the previous session to end up at key resistance zones as the markets were buoyed by some positive sentiment. Stocks rebounded as easing political concerns for Hong Kong and upbeat economic data from China helped revive investor risk appetite. Hong Kong withdrew the extradition bill at the heart of the recent protests while Italian political risks eased with the formation of a coalition government and helped revive sentiment in Europe. China’s services sector expanded at its fastest pace in three months as a jump in new orders prompted the biggest hiring increase in over a year. The US Trade Deficit shrank in July although the closely watched deficit with China grew by 9.4% and hit a record high with the EU. The DOW closed up 0.98% while the broader SP500 was up 1.08% and the Nasdaq also ended up 1.30%. In Europe, Indexes were higher also being supported by a lift in sentiment as there seems to be a global synchronized uptick in confidence. UK PM Boris had his hopes for an election dashed which put the brakes on a no-deal exit from the EU and supported hopes for a deal or at least an orderly Brexit.

US Bond Yield curves steepened as improving risk sentiment sent longer-dated yields higher. The US Feds Beige Book pointed to the same modest expansion as in earlier reports and helped lift the longer dated yields ahead of Employment data out Friday.

The USD was again under pressure as economic data showed continued modest growth in the US and eased expectations for a higher number of interest rate cuts. Also providing USD bears with fuel is the unwinding of Long Dollar bets as risk moved back in to Equities. The EURO continued to push higher being supported by weakness in the USD and also by fresh doubts that the ECB will provide enough stimulus for the Eurozone. The GBP found support on the potential for the government to block a no-deal Brexit from Boris. The vote in favor of the opposition means that they can now approve legislation designed to prevent the PMs government from taking the country out of the EU without a deal. The AUD continued the move higher on the back of positive Chinese data and the apparent willingness for Beijing to provide stimulus through lower reserve requirements for banks that will support growth and combat tariffs. The USDJPY edged higher as the USD fell although gains were offset by safe haven YEN selling. The pair now looks set to test up to the 106.750 zone.

Gold had another positive move to back up the rally the previous session despite the risk on tone into shares. This is interesting as it may point to the fact that safe haven buyers still see the potential for Indexes to come under pressure. Oil bounced back hard with a 4% rally as price was supported by expectations for a lift in demand and also by the fall in the dollar. Traders will be watching Inventory data out tonight which is expected to again be lower and could further support price. Copper also saw a move up and looks set to put the squeeze on sellers if the positive sentiment can continue.

Cryptocurrencies eased back slightly to end generally lower across the board. Bitcoin is currently trading at $10591.9 down 0.99% while Ethereum is trading at $175.83 down 2.94% and Ripple is at $0.25957 down 1.33%.

The ASX200 opened weak yesterday and at one point was down over 70 points until buyers fought back to close the index down only 20.4 points to 6553. Healthcare was the biggest drag on the index being followed by Telecom Services while the Gold sector ended up strong thanks to a solid rally in Gold in the US overnight session. Falling stocks outnumbered advancing ones by 659 to 565 and 364 ended unchanged.

The ASX200 is expected to open up 15/20 points as the SPI200 continued higher overnight to continue on from the days sessions move up off the lows.


AUD Trade Balance 11:30am

EUR German Factory Orders 4pm

USD ADP Non-Farm Employment Change 10:15pm

USD Unemployment Claims 10:30pm

USD ISM Non-Manufacturing PMI and Factory orders 12am

USD Crude Oil Inventories 1am

CHF SNB Chairman Jordan Speaks 2am