The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (as at 7am AEST)

  • SPI200 (Dec) overnight futures up 5 pts to 6687
  • SP500 up 14.95 pts to 2976.74
  • NASDAQ up 59.71 pts to 7999.34
  • Dow Jones up 96.58 pts to 26,916.83
  • FTSE100 down 18.00 pts to 7408.21
  • DAX30 up 47.14 pts to 12,428.08
  • GOLD futures US Session (December) down $28.10 to $1478.30 an ounce
  • COPPER futures US Session (Comex Dec) down $0.0250 to $2.5730 a pound
  • OIL futures US Session (Nymex Nov) down $1.67 to $54.24 a barrel
  • CRB Index down 1.78 pts to 173.94
  • AUDUSD trading at 0.6750
  • EURUSD trading at 1.0899
  • GBPUSD trading at 1.2290
  • USDJPY trading at 108.1200
  • USD Index US Session (ICE Dec) trading at 99.040 up 0.279

US Indexes rallied from the open to end the first day of a new trading week with gains. Traders were buoyed by news from the White House who said they were not looking to de-list Chinese companies on US stock exchanges and that it was just ‘fake news’. Traders were viewing the news of potential de-listing as just a tactic ahead of the US/China trade talks on the 10th and 11th of this month. This was supported by the fact that traders exited safe haven assets as US 10-year Bond Yields rallied and Gold was hit lower. The DOW closed up 0.36% while the broader SP500 was up 0.50% and the Nasdaq ended up 0.75%. In Europe, Indexes were mixed as exporters were supported by a fall in the EURO. The German DAX index found support from expectations for further cuts in rates as data showed inflation unexpectedly slowed for the third consecutive month. The data led to the growth forecast for Europe’s biggest economy being revised lower for the year. The FTSE came under pressure from commodity linked stocks and weaker Oil.

IMF data showed that the USD share of Central Banks currency reserves fell in the second quarter to its lowest level since the end of 2013 while the YEN’s reserves grew to the largest in around 20 years. Although the Dollar remains the worlds dominant currency, the data shows the shift to safe haven currency pairs and diversification away from the USD.

The USD continues to caught up in a fight between the bulls and the bears as price pushed higher during the European session and managed to hold onto the gains into the US close. The action reversed the previous sessions negative move as traders again were driven by news on trade. The Dollar is also seeing some support from seasonal demand. The EURO continued its move lower as data out shows the weakening economic outlook for the Eurozone and as the USD moved higher. The GBP saw some choppy action overnight as price oscillated around the 1.2300 whole number. The AUD continued to be pressured, even after some positive data out of China. Buyers managed to provide some support around the 0.6745 zone although the level may be short lived if the selling continues in the next few sessions. The USDJPY was this time lifted by the strength into the USD as as safe haven YEN buyers took a back seat.

Gold was beaten down as the USD rallied and traders fled from the safe haven asset on news that the US was not de-listing Chinese companies. Oil continues to head lower and has closed the Gap up from the Saudi scare a few weeks ago. Traders continue to see pressure on the commodity from a decrease in demand from China who is the largest importer. Copper again took a hit on the open of the US session and moved down to support around 2.5750.

Cryptocurrencies managed to rally overnight and hold on to the gains into the close. Bitcoin is currently trading at $8227.8 up 2.77% while Ethereum is at $176.90 up 4.74% and Ripple is trading at $0.25352 up 5.69%.

The ASX200 started the session on the front foot to move higher but then in came the end of quarter selling to smack the index lower, closing down 2o points in the 4:10pm match. In the end the index finished down 27.8 points to 6688.3 with the IT sector being the biggest drag on the action followed by the Gold sector. Falling stocks outnumbered advancing ones by 642 to 524 and 369 ended unchanged.

The ASX200 is expected to open up 5/10 points after the SPI200 edges up off support after a choppy day session.

ECONOMIC DATA OUT TODAY (AEST)

AUD Building Approvals 11:30am

AUD Cash Rate and RBA Statement 2:30pm

USD FOMC Member Evans Speaks 5:15am

EUR German Final Manufacturing PMI 5:55pm

EUR Final Manufacturing PMI 6pm

GBP Manufacturing PMI 6:30pm

EUR CPI Fash Estimate 7pm

AUD RBA Gov Lowe Speaks 7:20pm

CAD GDP 10:30pm

USD ISM Manufacturing PMI 12am

EUR German Buba President Weimann Speaks 3:30am

SPI200 INTRADAY LEVELS TO WATCH