The Morning Jumpstart

MARKET SNAPSHOT

  • SPI200 overnight futures up 23 pts to 6171
  • SP500 up 2.06 pts to 2718.37
  • NASDAQ up 6.62 pts to 7510.30
  • FTSE100 up 21.30 pts to 7636.93
  • DAX30 up 128.77 pts to 12306.00
  • GOLD futures up $3.50 to $1254.50 an ounce
  • COPPER futures down $0.55 to $296.60 a pound
  • OIL futures up $0.70 to $74.15 a barrel
  • CRB Index up 1.49 pts to 200.39
  • AUDUSD trading at 0.7405
  • EURUSD trading at 1.1684
  • GBPUSD trading at 1.3208
  • USDJPY trading at 110.7600

The US managed to end the session Friday with minor gains after a choppy volatile week. The DOW was up 55.36 points or 0.23% while the SP500 was up 0.08% and the Nasdaq up 0.09%. Trade was fears were pushed to the backburner for the session as financials gained after US lenders cleared the second part of the Federal Reserve’s stress test. Chinese shares rallied Friday although the market remained cautious ahead of July 6 when the US administration is due to impose tariffs of $34 Billion which is then expected to illicit a response from Beijing. In Europe Indexes also had a strong night recovering some of the previous sessions losses.

Cryptocurrencies had a good weekend to push higher with Bitcoin current trading at $6392.5 up 0.74%. Ethereum is at $453.50 up 1.69% while Ripple is at $0.46352 up 0.72%. Traders net short position on CBOE Bitcoin futures fell to 1368 from 1595 a week prior.

The USD index was lower in Friday nights trading even as traders increased bullish bets on the USD for the second straight week. Net long positions rose to $11.03 Billion from $8.64 Billion as sentiment has improved thanks to a backdrop of rising interest rates. The EUR was higher along with both the GBP and the AUD on the weakness in USD.

Gold managed to bounce to finish slightly higher on technical buying after prices have fallen over the past few weeks. Copper continued to edge lower as trade war fears have capped buying while Oil continued to edge higher.

Locally, traders were cautious on the last trading day of the year as the ASX200 ended lower dragged down by financials and healthcare stocks. ANZ led the way lower in the banks as Chairman David Gonski said the bank expected ‘difficult trading conditions in foreseeable future’. Regulators have told banks to keep higher cash reserves in relation to their loan books and cut their interest-only loans, prompting banks to raise interest rates and sell non-core assets. This has seen investors wipe out A$32 billion from the market capitalisation of Australia’s biggest money managers.

The ASX200 is expected to open up around 20 points as the SPI200 reversed the days weakness with a rally during the European and US sessions Friday night.

 

ECONOMIC DATA OUT TODAY (AEST) –

AUD  MI Inflation Gauge 11am

AUD  ANZ Job Ads 11:30am

CNY  Caixin Manufacturing PMI 11:45am

AUD  Commodity Prices 4:30pm

EUR  German Final Manufacturing PMI 5:55pm

EUR  Final Manufacturing PMI 6pm

GBP  Manufacturing PMI 6:30pm

EUR  PPI and Unemployment Rate 7pm

USD  ISM  Manufacturing PMI and Construction Spending 12am

 

SPI200 INTRADAY LEVELS TO WATCH –