The Morning Jumpstart


  • SPI200 overnight futures down 8 pts to 6166
  • SP500 down 19.82 pts to 2774.02
  • NASDAQ down 42.58 pts to 7716.61
  • FTSE100 down 100.08 pts to 7591.96
  • DAX30 down 192.72 pts to 12417.13
  • GOLD futures down $13.60 to $1241.80 an ounce
  • COPPER futures down $8.85 to $275.10 a pound
  • OIL futures down $3.50 to $70.61 a barrel
  • CRB Index down 5.46 pts to 192.83
  • AUDUSD trading at 0.7369
  • EURUSD trading at 1.1674
  • GBPUSD trading at 1.3206
  • USDJPY trading at 111.9900

US shares were hit hard to give up some of the recent gains as the US raises the stakes in a trade war. The DOW was down 219.21 points or 0.88% while the SP500 was down 0.71% and the Nasdaq down 0.55%. Trump threatened to impose 10% tariffs on another $200 billion of Chinese goods and ultimately targeting more than $500 billion. A two month period will now see further debate before the tariffs are imposed. Shanghai shares were hit hard yesterday to close down 1.78%. China has vowed to bite back as they accuse the US of bullying. In Europe shares were also hit hard on the escalating trade dispute as traders see it continuing for a prolonged period of time and eating away at company earnings.

Cryptocurrencies held up relatively well currently trading around the same levels as yesterday. Bitcoin is trading at $6375.8 down 0.04% while Ethereum is at $440.25 down 0.05% and Ripple is at $0.44735 down 0.50%.

The USD index was stronger as safe haven buying flowed into the USD along with traders seeing strength in the underlying economy. The EUR, the AUD and the GBP all lost ground on strength in the USD as traders are still focused on US rate rises.

Gold was beaten lower overnight as traders see little safe haven prospects as the USD rallies. Copper also had a bad night as trade war tensions flared up and commodity indexes were hit hard as funds take risk out of commodities. Oil also lost a lot of ground even after inventories came in a lot weaker than expectations and supply continues to tighten. Traders were happy to book recent gains and take risk off the table in an uncertain environment.

Locally, trade war fears reared its head after the US threatened to impose tariffs on a further $200 billion of Chinese imports. Banks fell but were not the main drag on the ASX200 as base metal prices fell hurting local material stocks. Traders may expect more pressure today as overnight markets and commodity indexes were rattled. Declining stocks outnumbered rising ones by 669 to 535 and 360 ended unchanged.

The ASX200 is expected to open down 5/10 points after yesterdays push lower may have already factored in the fall in the US.



AUD  MI Inflation Expectations 11am

EUR  German Final CPI 4pm

GBP  BOE Credit Conditions Survey 6:30pm

EUR  Industrial Production 7pm

EUR  ECB Monetary Meeting Accounts 9:30pm

USD  CPI Data and Unemployment Claims 10:30pm

USD  Federal Budget Balance 4am