The Morning Jumpstart


  • SPI200 (Dec) overnight futures up 2 pts to 6719
  • SP500 down 14.72 pts to 2992.07
  • NASDAQ down 65.20 pts to 8117.67
  • Dow Jones down 159.72 pts to 26,935.07
  • FTSE100 down 11.50 pts to 7344.92
  • DAX30 up 10.31 pts to 12,468.01
  • GOLD futures US Session (December) up $8.90 to $1515.10 an ounce
  • COPPER futures US Session (Comex Dec) down $0.0180 to $2.5910 a pound
  • OIL futures US Session (Nymex Oct) down $0.10 to $58.09 a barrel
  • CRB Index down 0.43 pts to 177.34
  • AUDUSD trading at 0.6766
  • EURUSD trading at 1.1017
  • GBPUSD trading at 1.2478
  • USDJPY trading at 107.5600
  • USD Index (ICE Sept) trading at 98.085 up 0.238

US Indexes ended the week on a low note as shares sold off mid session and held the losses into the close. Friday night also saw some pressure from “quadruple witching”, where investors unwound positions in futures and options contracts before they expired. The US has sent troops to bolster defenses in Saudi Arabia after the recent attacks as the UN General Assembly is set to deliver clues as to the fallout from the attacks as tensions increase i the region. The DOW closed down 0.59% and the broader SP500 was down 0.49% while the Nasdaq ended down 0.80%. In Europe, major Indexes ended the week on a high as traders bought into the oil and banking sectors along with moving into more defensive sectors ahead of a week full of economic data.

Two days of trade negotiations were wrapped up Friday but a trade deal still looks very much elusive as Chinese officials unexpectedly cancelled a visit to farms in Montana and Nebraska. We expect to see some further uncertainty in the markets this week as Geopolitics and Data may keep risk on the sidelines for now.

The USD rallied Friday to make back some of the previous sessions lost ground in a move that was prompted by expectations that the US Fed Reserve will not cut interest rates as aggressively as first thought or hoped. The EURO came under pressure at the beginning of the European session as the USD started to rally but buyers stepped back into the pair during the US session as the pressure eased on the Dollar. The GBP also came under pressure from the rally into the USD but found added pressure after the Irish foreign minister said that London and the EU were not yet close to a Brexit deal. The AUD continued the march lower after news that Chinese officials cancelled a farm visit and reopened the door for a prolonged trade war. The USDJPY came under pressure during the US session as safe haven YEN buyers stepped into the action on news of the farm visit showing that trade tensions are at the forefront of traders minds going into the new week.

Gold saw a spike in safe haven buying, which countered USD strength, into the US close Friday as uncertainty for trade continued. Oil traded in a narrow range as traders await further direction from US/Iran tensions that could trigger further conflict in the Middle East. Copper fell over into the US close as the Farm visit news filtered through.

Cryptocurrencies traded lower to give up some of the recent gains as Bitcoin hovers around the 10000 mark currently trading at $10033.5 up 0.46%. Ethereum is at $210.00 down 2.59% while Ripple is trading at $0.27603 down 4.69%.

The ASX200 ended Friday with minor gains after a selloff around midday gave back a lot of the gains from the open. At the close of the session the Index was up 13.30 points to 6730.80 with the Gold, Metals and Mining and Materials sectors doing most of the heavy lifting. Rising stocks outnumbered declining ones by 600 to 524 and 374 ended unchanged.

The ASX200 is expected to open flat to lower as buyers may be pressured on the back of China cancelling farm visits in the US. The reaction into the close of the US session showed the heavy reliance and sensitivity of the bulls on a trade deal coming through sooner rather than later. We see the potential for an uncertain session as traders try to decipher what will happen next in trade.


AUD Flash Manufacturing and Services PMI 9am

EUR German Flash Manufacturing and Services PMI 5:30pm

EUR Flash Manufacturing and Services 6pm

GBP MPC Member Tenreyro Speaks 7:15pm

EUR ECB President Draghi Speaks 11pm

USD Flash Manufacturing and Services 11:45pm

USD FOMC Member Bullard Speaks 3am

JPY BOJ Gov Kuroda Speaks 3:30am

EUR German IFO Business Climate 6am