The Morning Jumpstart

MARKET SNAPSHOT (7:15am AEST)

  • SPI200 overnight futures up 17 pts to 6185
  • SP500 up 5.15 pts to 2806.98
  • NASDAQ up 21.67 pts to 7841.87
  • FTSE100 down 23.00 pts to 7655.79
  • DAX30 down 12.85 pts to 12548.25
  • GOLD futures down $6.60 to $1224.50 an ounce
  • COPPER futures down $1.45 to $274.15 a pound
  • OIL futures (Nymex) down $0.46 to $67.80 a barrel
  • CRB Index down 0.14 pts to 192.49
  • AUDUSD trading at 0.7380
  • EURUSD trading at 1.1691
  • GBPUSD trading at 1.3102
  • USDJPY trading at 111.3400

US Indexes were mixed as the broader SP500 gained ground while the DOW ended lower. The DOW was down 13.83 points or 0.06% while the SP500 was up 0.18% and the Nasdaq was also up 0.28%. A further jump in US Bond yields helped financials gain while traders expect continued strength in earnings and economic growth figures. Traders still expect the US Fed Reserve to continue raising interest rates despite Trumps criticism. In Europe shares were weaker as trade war fears continued to cap buying pressure. European bonds were higher as the Euro edged lower.

Cryptocurrencies are again mixed as Bitcoin is strong as traders await the cryptos ETF. Bitcoin is currently trading at $7750.8 up 4.80% while Ethereum is at $451.97 down 1.28% and Ripple is trading at $0.44839 down 0.32%.

The USD bounced back to continue its march higher gaining back lost ground from Fridays session. Traders see continued economic strength and further monetary tightening pressures supporting a USD rally. The EUR, the GBP and AUD all fell on USD strength  as the Aussie continues to battle with commodity index weakness. The Yen may find support as the Bank of Japan (BOJ) discussed modifying its huge stimulus program.

Gold resumed its move lower as buyers were pressured by the rise in the USD. Copper also moved lower as trade war concerns looked likely to escalate. Oil was lower finding increased volatility as Iran tensions were offset by the potential for Saudi Arabia to ramp up production ahead of a November deadline for countries to comply with US sanctions on Iranian crude sales.

Locally, shares were weaker from the open and never looked back as trade war concerns were once again at the forefront of traders minds. The fall erased recent gains as Trump may look to impose tariffs on all Chinese imports. Financials were the biggest drag in the index while BHP was lower after the mining giant was hit with a class action lawsuit regarding the Samarco Dam failure in 2015. Declining stocks outnumbered rising ones by 692 to 540 and 344 ended unchanged.

The ASX200 is expected to open up 15/20 points as the SPI200 was dragged up off the days lows during the US session.

 

ECONOMIC DATA OUT TODAY (AEST) –

JPY  Flash Manufacturing PMI 10:30am

EUR  German Flash Manufacturing PMI and Flash Services PMI 5:30pm

EUR  Flash Manufacturing PMI and Flash Services PMI 6pm

USD  Flash Manufacturing PMI and Flash Services PMI 11:45pm

 

SPI200 INTRADAY LEVELS TO WATCH –