The Morning Jumpstart


  • SPI200 overnight futures down 8 pts to 6047
  • SP500 up 4.85 pts to 2786.85
  • NASDAQ up 43.87 pts to 7703.79
  • FTSE100 down 33.62 pts to 7703.81
  • DAX30 down 0.61 pts to 12842.30
  • GOLD futures down $3.60 to $1299.60 an ounce
  • COPPER futures down $1.20 to $324.50 a pound
  • OIL futures down $0.06 to $66.04 a barrel
  • CRB Index up 0.75 pts to 200.14
  • AUDUSD trading at 0.7573
  • EURUSD trading at 1.1746
  • GBPUSD trading at 1.3375
  • USDJPY trading at 110.3700

The US edged higher being boosted by tech stocks as traders were cautious ahead of the Fed Reserve policy decision later tonight as inflationary data came out in line with expectations. The DOW was down 1.58 points or 0.01% while the broader SP500 was up 0.17% and the Nasdaq up 0.57% to outperform. Traders expect the FOMC to lift rates as they will be focused on whether or not strong inflationary data is enough to warrant a fourth rise this year. Trump continues his feud with the G7 countries on trade related issues speaking out against Canada.  In Europe indexes were dragged lower by mining and energy stocks. Although traders brushed off news from the US and North Korea summit, the potential for a reduction in associated risk could mean a focus back on global economic fundamentals.

Cryptocurrencies extends the move lower as crypto traders look for seasonal buying to hold support. Bitcoin is currently trading at $6527.3 down 3.69% while Ethereum is at $488.51 down 5.67% and Ripple at $0.54997 down 5.10%.

The USD index finished higher to regain some footing ahead of the FOMC meeting as traders looked to square up positions and reduce risk. The EUR came under further pressure from a USD rally and as traders look towards the ECB meeting. The GBP and the AUD was also lower on the USD strength. Traders are also watching to see if the ECB signals a winding down of its vast bond-buying program which would be Euro positive and USD negative.

Gold was lower as the need for safe haven buying diminished on US and North Korean summit. Copper also edged lower pressured by the USD. Oil was relatively flat at the close as traders hold tight ahead of inventories tonight.

Locally, first time home loan sales dropped 8% as the ABS found overall loan approvals dropped 1.4% in April. Investment bank UBS warned that a housing correction was due as capital city house prices are falling and credit conditions will tighten after the Banking Royal Commission. With the RBA boss set to talk today and a number of data releases tonight, ASX200 traders may be unwilling to take on a lot of risk today.

The ASX200 is expected to open down 5 points as SPI200 continued to find pressure from sellers through the European and US sessions.



AUD  Westpac Consumer Sentiment 10:30am

AUD  RBA Gov Lowe Speaks 12pm

CHF  PPI 5:15pm

GBP  CPI and PPI Data 6:30pm

EUR  Employment Change and Industrial Production 7pm

USD  PPI Data 10:30pm

USD  Crude Oil Inventories 12:30am

USD  Federal Funds Rate, FOMC Statement and FOMC Economic Projections 4am

USD  FOMC Press Conference 4:30am