The Morning Jumpstart


  • SPI200 (Dec) overnight futures up 10 pts to 6721
  • SP500 up 0.06 pts to 3006.79
  • NASDAQ up 5.49 pts to 8182.88
  • Dow Jones down 52.29 pts to 27,094.79
  • FTSE100 up 42.37 pts to 7356.42
  • DAX30 up 68.08 pts to 12,457.70
  • GOLD futures US Session (December) down $9.30 to $1506.50 an ounce
  • COPPER futures US Session (Comex Dec) down $0.0060 to $2.6070 a pound
  • OIL futures US Session (Nymex Oct) up $0.57 to $58.68 a barrel
  • CRB Index up 0.13 pts to 177.77
  • AUDUSD trading at 0.6793
  • EURUSD trading at 1.1043
  • GBPUSD trading at 1.2528
  • USDJPY trading at 108.0100
  • USD Index (ICE Sept) trading at 97.942 down 0.192

US Indexes had a flat session overnight as traders seem to be digesting the interest rate cuts and Powell comments while Geopolitical risk still remains with Iran and the US at odds after Saudi attacks. Also leaving new buyers in Limbo was expectations on Trade and Tariffs as US and Chinese trade negotiators resumed face-to-face talks for the first time in nearly two months which will continue tonight. These initial talks are attempting to lay the groundwork for ‘high level’ talks in early October where a number of unresolved issues will be addressed. General consensus seems to be that the two parties are still poles apart on the main issues so any deal will be very thin and light in context. The DOW closed down 0.19% and the broader SP500 was flat and the Nasdaq ended up 0.07%. In Europe, major Indexes pushed higher as investors dived into battered Eurozone banks after the US were less dovish on further rate cuts this year and pricing is seen to be relatively weak.

The US Fed Reserve lowered rates by 25 basis points and it seems that the market believes another cut in the next meeting is on the cards even after the Fed said that future reductions would be ‘largely data-dependent’. According to CME’s Fed watch tool, traders see close to a 50% chance for another 25 basis point rate cut in October. With the SP500 up nearly 20% in 2019, the index is trading at about 17 times expected earnings according to data.

The USD reversed the previous sessions gains after the Feds rate cut as traders may still see unresolved trade issues that can cause further downside risk to the economy. The US rate cut also boosted the appeal of other currencies versus the dollar which pressured buyers after the Swiss National Bank (SNB), Bank Of England (BOE) and Bank of Japan (BOJ) all kept their policies on hold yesterday. The EURO found some support through the Asian and European sessions only to fall away into the close of the US to continue to be capped by selling pressure. The GBP rallied in late trading after comments from the ECB president which raised hopes for Brexit deal to be struck. The AUD continued to come under selling pressure and looks set to push lower again today. The USDJPY pretty much gave up the gains from the previous session on the open of the Asian session yesterday and then was range bound overnight.

Gold found some bargain hunters come in to support price through the Asian and European session yesterday before easing off the highs into the US close. Price seems to be holding so we may see another run up through the day to support local miners. Oil found some buyers step in to support current levels as tensions with the US and Iran continue and risks to further disruptions remain. Copper had a relatively contained session although the selling pressure remains as price hovers down around short term support at 2.6000.

Cryptocurrencies came under pressure as Bitcoin spiked lower only to bounce right back to where they started. Bitcoin is currently trading at $10254.9 up 0.57% while Ethereum is at $219.88 up 3.95% and Ripple is weaker at $0.29992 down 3.94%.

The ASX200 started the session yesterday with a bang as price rocketed higher 60 points on the open only to fade into the close. In the end the index ended up 35.9 points to 6717.5 with the Telcom Services and Utilities sectors doing the best while Gold came under pressure. Aussie employment data came out better than expected although the Unemployment Rate increased from 5.2% to 5.3% which sent the AUDUSD down. Rising stocks outnumbered declining ones by 585 to 574 and 363 ended unchanged.

The ASX200 is expected to open up 10/15 points after the SPI200 continued to push higher overnight.


EUR German PPI Data 4pm

GBP BOE Quarterly Bulletin 9pm

CAD Retail Sales Data 10:30pm

EUR Consumer Confidence 12am