The Morning Jumpstart


  • SPI200 (Sep) overnight futures down 13 pts to 6664
  • SP500 down 9.43 pts to 2997.96
  • NASDAQ down 23.17 pts to 8153.54
  • Dow Jones down 142.70 pts to 27,076.82
  • FTSE100 down 46.05 pts to 7332.41
  • DAX30 down 88.22 pts to 12,380.31
  • GOLD futures US Session (December) up $6.40 to $1505.90 an ounce
  • COPPER futures US Session (Comex Dec) down $0.0580 to $2.6420 a pound
  • OIL futures US Session (Nymex Oct) up $6.86 to $61.71 a barrel
  • CRB Index up 8.37 pts to 183.17
  • AUDUSD trading at 0.6865
  • EURUSD trading at 1.1001
  • GBPUSD trading at 1.2430
  • USDJPY trading at 108.1500
  • USD Index (ICE Sept) trading at 98.185 up 0.355

US Indexes closed the session lower as the spike in Oil prices caused some traders to lock away recent gains in a risk off tone into equity markets. With the spike in Oil after the attacks on Saudi oil facilities over the weekend, traders are now questioning the impact that the higher prices will have on economic growth. Also on the minds of traders is whether or not the tensions between the US and Iran will escalate and cause further disruptions. The rally in Oil triggered increased demand in safe haven assets such as US debt (as yields pushed lower) and gold. The DOW closed down 0.52% while the broader SP500 was down 0.31% and the Nasdaq also ended down 0.28%. In Europe, major Indexes also come under pressure from the spike into Oil. The Oil sector did well with most majors rallying on higher prices although energy dependent companies felt the pinch.

The attack cut Saudi Arabia’s production in half and shut down 5% of the global crude oil output. The US has already come out and said that they will use emergency oil reserves to ensure stable supply and support the market. The attack has exposed vulnerabilities so the market is now pricing in additional geopolitical and security risk. Traders remain concerned over the stability of the middle east as the finger is now well and truly pointed at Iran for the attacks. The longer the price of oil stays higher, the more that ‘input costs’ into the economy (such as petrol, heating, diesel costs etc) will push higher and pressure global growth.

The USD was initially hit on the open yesterday but managed to make back the losses after Trump approved the use of emergency US crude stockpiles. Safe haven traders also supported the action into the USD. The EURO did not manage to gain too much ground on the open prior to the Asian session kicking off but did see sellers jump into the action at the start of the European session as the USD rallied. The pair dropped 75 pips on the bounce in the dollar and showed bears are still in control of the pair. The GBP also worked its way lower through the Asian, European and US sessions to end on its lows. The AUD came under some pressure from the days open and remained in its recent trading range being support around 0.6850 and resistance around 0.6890. The USDJPY opened weaker but managed to make back all the losses as the USD pushed higher. Price made its way back up to resistance levels around 108.200.

Gold bounced on the back of safe haven buying into the commodity but major gains were capped as traders assessed the situation for higher oil prices. Oil spiked higher on the open as expected, straight through resistance at 60.60. Buyers continue to push price for new highs with the next target in sight up at 66.50. Copper came under selling pressure on market jitters as demand for the metal comes back into question.

Cryptocurrencies are mixed as Bitcoin lags while altcoins are picking up and showing some strength. Bitcoin is currently trading at $10243.7 down 0.37% while Ethereum is showing some strength trading at $198.45 up 4.77% and Ripple is at $0.26191 up 1.02%.

The ASX200 had a relatively flat session yesterday after getting off to a rocky start, as traders expected volatility from a spike in Oil prices. At the close of trade the Index ended up 4.3 points to 6673.5 which was a lot better finish than a lot of traders expected prior to the open. The Energy and Gold sectors were strong as expected while mining and resource sectors also did well. Falling stocks outnumbered advancing ones by 637 to 584 and 358 ended unchanged.

The ASX200 is expected to open down 10 points as the SPI200 fails off resistance into the close.


AUD Monetary Policy Meeting Minutes and HPI 11:30am

EUR German ZEW Economic Sentiment 7pm

USD Industrial Production and Capacity Utilization Rate 11:15am