The Morning Jumpstart

MARKET SNAPSHOT (7:15am AEST)

  • SPI200 overnight futures up 12 pts to 6203
  • SP500 up 25.67 pts to 2846.07
  • NASDAQ up 91.47 pts to 7932.24
  • FTSE100 down 50.79 pts to 7658.26
  • DAX30 down 110.06 pts to 12579.33
  • GOLD futures up $6.30 to $1231.80 an ounce
  • COPPER futures (Comex) up $0.053 to $2.864 a pound
  • OIL futures (Nymex) up $0.76 to $69.28 a barrel
  • CRB Index up 1.47 pts to 194.66
  • AUDUSD trading at 0.7457
  • EURUSD trading at 1.1731
  • GBPUSD trading at 1.3193
  • USDJPY trading at 111.0200

The US had a strong night as major indexes rally with buyers showing renewed confidence. The DOW was up 172.16  points or 0.68% while the SP500 was up 0.91% and the Nasdaq also joined in the party to close up 1.17%. Markets rallied as talks between Trump and the European Commission President Jean-Claude Juncker struck a very positive tone. Trump said that they will work together towards zero tariffs and open up trade between markets. Tech heavyweights gained to lift the Nasdaq as the sector is seen as a safe haven from trade war concerns. In Europe shares were weaker as traders awaited news on the EU meeting with Trump. Expect European shares to be strong out of the gate tonight as they play catchup with the US rally.

Cryptocurrencies has held its ground overnight as Bitcoin trades around $8215.8 down 0.20%. Ethereum is trading at $476.20 up 0.60% while Ripple is at $0.46236 up 2.05%.

The USD ended lower on talks of EUR trade concessions as traders exited long positions ahead of news.  The EUR , GBP and AUD all edged higher driven by the weakness in the USD. The Aussie found extra buying pressure from a rise in commodity indexes.

Gold bounced to continue the choppy price action as the USD gave the precious metal a boost. Copper was also higher as sellers locked in some gains and sentiment got a boost from tariff news. Oil continued higher helped along by USD weakness and also as US inventories came in lower than expected.

Locally, shares were lower as the ASX200 finished down 18.20 points. Advancing stocks outnumbered falling ones by 629 to 573 and 383 ended unchanged. Financials were the biggest drag on the index as the sector dropped 0.6% with WBC and CBA leading the way lower. Continued overnight strength in commodities may help materials stocks again today. Copper is still seen as a yardstick for China/US tensions and with buyers slowly edging back in, traders may gain confidence.

The ASX200 is expected to open up 10 points as the SPI200 closes higher overnight.

 

ECONOMIC DATA OUT TODAY (AEST) –

AUD  Import Prices 11:30am

EUR  Spanish Unemployment Rate 5pm

EUR  Main Refinancing Rate 9:45pm

EUR  ECB Press Conference 10:30pm

USD  Durable Goods Orders, Unemployment Claims and Wholesales Inventories 10:30pm

 

SPI200 INTRADAY LEVELS TO WATCH –