The Morning Jumpstart


  • SPI200 (Dec) overnight futures down 32 pts to 6591
  • SP500 down 4.12 pts to 2966.15
  • NASDAQ down 8.39 pts to 8048.65
  • Dow Jones down 29.23 pts to 26,787.36
  • FTSE100 down 33.63 pts to 7213.45
  • DAX30 down 25.09 pts to 12,486.56
  • GOLD futures US Session (December) up $8.60 to $1497.30 an ounce
  • COPPER futures US Session (Comex Dec) up $0.005 to $2.6330 a pound
  • OIL futures US Session (Nymex Nov) down $1.22 to $53.48 a barrel
  • CRB Index down 1.05 pts to 174.99
  • AUDUSD trading at 0.6774
  • EURUSD trading at 1.1030
  • GBPUSD trading at 1.2618
  • USDJPY trading at 108.4100
  • USD Index US Session (ICE Dec) trading at 98.188 up 0.183

US Stock Indexes took a breather over night in light trading to give up some gains as traders re-assess the ‘phase 1’ trade deal. Reports out that China wanted more talks before signing Washington’s “phase one” deal added to concerns about the deal and triggered a cautious approach to the session. Analysts generally agree that the partial deal lacks substance and are awaiting further details while US Treasury Secretary Mnuchin warned that an additional round of tariffs on Chinese imports will be imposed if a trade deal with China has not been reached by the time they are set to start on Dec 15th. Trump is set to authorize sanctions on Turkey along with stopping negotiations on a $100Bill trade deal and boost tariffs on steel to 50% after Turkey’s army invaded Syria. The DOW closed down 0.11% while the broader SP500 was down 0.14% and the Nasdaq ended down 0.10%. In Europe, Indexes moved lower as traders assess news form China and on Brexit. Buyers hit the pause button and mining stocks were sold lower. A Brexit deal is still hanging in the balance as parliament indicated that the EU wanted more concessions from the PM and said a full agreement was unlikely this week.

Industrial stocks start to report this week and will be closely watched by traders for signs of whether the US economy is really slipping and slipping enough to matter. The sector, although just shy of 10% of the SP500, is widely viewed as a barometer for the health of the economy. The sector has climbed over 19% this year but is still short of the record peak from early 2018. Traders will be watching financial forecasts for the next quarter and year to see if companies will ramp up capital spending which has halted due to the trade war.

The USD saw choppy trade as price moved between gains and losses for the session. The dollar opened slightly higher to start the week but then was range bound into the US close. Traders had to re-assess short positions on continued concern over the partial deal after China comments. The EURO was also choppy to end slightly lower than Fridays close. The GBP managed to hold onto the recent gains as traders await further news on Brexit and whether a deal can be hashed out sooner rather than later. The AUD spent the Asian and European sessions heading lower as China comments throw uncertainty over a partial deal. The pair managed to recover some of the losses into the US close as intraday shorts covered positions. The USDJPY found a safe haven YEN bid to initially head lower although support from the USD triggered sellers to close out and price to bounce back and end only slightly higher from Fridays close.

Gold gained back some lost ground as sellers were squeezed on China comments and safe haven buyers dipped their toes back in the action. Oil found some selling pressure after China comment on trade while Copper was hit lower during European trade only to bounce back sharply into the start of the US session and hold into the close. We suspect that the commodity is awaiting further news on trade before picking a direction.

Cryptocurrencies had a mixed session as prices saw some choppy action. Bitcoin ended lower and is currently trading at $8335.0 down 1.23% while Ethereum fared better and is at $186.33 up 1.73% and Ripple is also up trading at $0.29113 up 3.64%.

The ASX200 got off to a good start yesterday but then faded into the close as selling pressure hit the market around 3:30pm. The index ended the session up 35.8 points to 6642.6 with the Energy and IT sectors leading the charge while the Gold sector ended down 5.08%. Rising stocks outnumbered declining ones by 647 to 511 and 346 ended unchanged.

The ASX200 is expected to open down 25 points as the SPI200 continued to back away from highs set during the day session.


AUD Monetary Policy Meeting Minutes 11:30am

JPY BOJ Gov Kuroda Speaks 11:30am

CNY CPI and PPI Data 12:30am

GBP BOE Gov Carney Speaks, Claimant Count and Average Earnings Index 7:30pm

EUR German ZEW Economic Sentiment 8pm

GBP MPC Member Vlieghe Speaks 11:30pm