The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT

  • SPI200 (Dec) overnight futures down 14 pts to 6602
  • SP500 down 11.75 pts to 2986.20
  • NASDAQ down 67.31 pts to 8089.54
  • Dow Jones down 255.68 pts to 26,770.20
  • FTSE100 down 31.75 pts to 7150.57
  • DAX30 down 21.35 pts to 12,633.60
  • GOLD futures US Session (December) down $4.20 to $1494.10 an ounce
  • COPPER futures US Session (Comex Dec) up $0.045 to $2.6430 a pound
  • OIL futures US Session (Nymex Nov) down $0.15 to $53.78 a barrel
  • CRB Index up 0.22 pts to 175.75
  • AUDUSD trading at 0.6856
  • EURUSD trading at 1.1166
  • GBPUSD trading at 1.2984
  • USDJPY trading at 108.4500
  • USD Index US Session (ICE Dec) down 0.410 to 96.925

US Stock Indexes moved lower on Friday into the weekend as concerns for trade continue to pressure growth. China posted its weakest growth rate in nearly three decades on Friday which had sellers pressure prices. Further losses were mitigated thanks to some positive earnings from Coke among others. Data out in the US highlighted that business investment contracted more sharply than expected in the second quarter even as earnings seem to surprise to the upside. The weaker than expected investment numbers will raise the doubts that consumers can continue to drive the economy. The DOW closed down 0.95% while the broader SP500 was down 0.39% and the Nasdaq ended down 0.83%. In Europe, Indexes ended the week on a negative note as buyers were disappointed by earnings results and attempted to decipher what will happen next for Brexit. Traders were happy to sit on the sidelines as they awaited for Brexit news from the weekend…although they will still be waiting for direction after Boris’s ‘extension letter’ saga.

The USD came under fire again on Brexit news as rallies in both the Pound and the Euro put pressure on the Dollar. The EURO had another good session going into the weekend on hopes that a Brexit deal will help lift the Eurozone and steer the area away from potential recession. The GBP also kept up with the buying momentum after the surprise deal from Boris and the EU. Traders still have concerns after the weekends shenanigans from PM Johnson that any decision may still be delayed by parliament and it is not clear whether government would seek to get the legislation required through parliament in order to get Brexit done and leave the EU on Oct 31st. The AUD continued to benefit from the dollar weakness and traders positioning themselves for potentially no more rate cuts from the RBA. The USDJPY continued to come under pressure from the Dollar move lower.

Gold ended the session relative unchanged with selling pressure being offset by weakness in the USD. The precious metal continues to hold around the 1500 zone on the futures contract and has the potential to lift on a safe haven bid if the US continues its trade tensions with China. Crude Oil was looking good through the European session on bullish signals from the refining sector, but then sellers stepped in to push price lower into the close of the US on China growth concerns. The longer term action is looking better as buyers start to hold a higher level. The problem will be if the ‘phase 1’ trade deal falls apart and its back to the drawing board. Copper had a positive session as buyers took charge at the start of the European session and remained in control into the close of the US.

Cryptocurrencies were higher over the weekend as Bitcoin holds above the key 8000 level and is currently trading at $8201.2 up 3.06% while Ethereum is at $174.48 up 1.67% and Ripple holds up well and is trading at $0.29296 up 1.02%.

The ASX200 ended the week on a sour note as buyers stayed on the sidelines and price ended Friday down 35 points to 6649.7 after Chinas weak data release. All sectors were weaker for the day with Consumer Staples ending down over 1% while Industrials was next on the list down 0.88% followed by Energy which was down 0.79%. Falling stocks outnumbered advancing ones by 630 to 513 and 334 ended unchanged.

The ASX200 is expected to open down 15 points as the SPI200 continued to move lower in the European and US sessions.

ECONOMIC DATA OUT TODAY (AEDT)

JPY Trade Balance 10:50am

EUR German PPI 5pm

GBP MPC Member Haldane Speaks 7:20pm

EUR German Buba Monthly Report Tentative

USD Federal Budget Balance Tentative

CAD Federal Election Tentative

SPI200 INTRADAY LEVELS TO WATCH