The Morning Jumpstart

MARKET SNAPSHOT

  • SPI200 overnight futures down 7 pts to 6213
  • SP500 up 3.02 pts to 2801.31
  • NASDAQ up 2.06 pts to 7825.98
  • FTSE100 up 10.54 pts to 7661.87
  • DAX30 up 47.76 pts to 12540.73
  • GOLD futures down $5.40 to $1241.20 an ounce
  • COPPER futures down $0.15 to $277.55 a pound
  • OIL futures up $0.68 to $71.01 a barrel
  • CRB Index down 0.28 pts to 193.73
  • AUDUSD trading at 0.7424
  • EURUSD trading at 1.1685
  • GBPUSD trading at 1.3222
  • USDJPY trading at 112.3800

US shares closed out the week on a positive note as industrial and energy stocks led the major indexes higher. The DOW was up 94.52 points or 0.38% while the SP500 touched five months highs closing up 0.11% and the Nasdaq was up 0.03%. In a report to congress, the US Fed Reserve reinforced views of strong economic growth strengthening expectations for higher interest rates. Things were quieter in the trade war front even finding some respite as US Treasury Secretary Steven Mnuchin said that the US and China might reopen trade talks. In Europe shares also had a solid end to the week to close higher as traders once again focus on up-coming earnings and away from trade war chatter.

Over the weekend, 12 Russian Intelligence agents were charged with hacking into Hillary Clintons computers ahead of the 2016 elections. This will make for an interesting chat between Trump and Putin in their upcoming meeting later today.

Cryptocurrencies have managed to show a bit of strength to edge higher as Bitcoin trades at $6386.2 up 1.82% while Ethereum is at $453.59 up 4.11% and Ripple at $0.44861 up 1.88%.

The USD again edged lower at the close of trade Friday as traders took the news of potential US/China talks as a positive for trade concerns. The USD has been seen as a safe haven as the trade war escalates so the recent push lower may be minor profit taking. The EUR, the AUD and the GBP all gained on the back of the USD weakness while the Pound initially weakened on the back of Trump comments saying that a soft Brexit will kill a bilateral trade deal.

Gold again headed south to weaken into the close as the precious metal failed to find any safe haven buyers as it again closed lower for the week. Copper was relatively unchanged as price found some support from the potential for the US and China to reopen trade negotiations. Oil was higher after a week of ‘swings and roundabouts’.

Locally, Aussie shares struggled on Friday to finish the weak as gains in healthcare stocks were offset by weakness in banks. Advancing stocks outnumbered falling ones by 669 to 495 and 374 ended unchanged.

The ASX200 is expected to open down 5 points as the SPI200 managed to hold up above support thanks to the rally in Europe and the US.

 

ECONOMIC DATA OUT TODAY (AEST) –

CNY  GDP, Industrial Production and Fixed Asset Investment 12pm

EUR  Trade Balance 7pm

USD  Retail Sales Data and Empire State Manufacturing Index 10:30pm

 

SPI200 INTRADAY LEVELS TO WATCH –