The Morning Jumpstart

MARKET SNAPSHOT (7:15am AEST)

  • SPI200 overnight futures up 21 pts to 6213
  • SP500 up 13.86 pts to 2827.22
  • NASDAQ up 95.40 pts to 7802.68
  • FTSE100 down 76.98 pts to 7575.93
  • DAX30 down 190.72 pts to 12546.33
  • GOLD futures (Dec) down $11.70 to $1215.90 an ounce
  • COPPER futures (Comex Sep) down $0.021 to $2.727 a pound
  • OIL futures (Nymex) up $1.31 to $68.97 a barrel
  • CRB Index up 1.01 pts to 192.65
  • AUDUSD trading at 0.7362
  • EURUSD trading at 1.1584
  • GBPUSD trading at 1.3019
  • USDJPY trading at 111.6400

The US was was dragged higher once again by Tech stocks as Apple became the first publicly listed company to hit $1 Trillion market cap. The DOW was down 7.66 points or 0.03% while the broader SP500 was up 0.49% and the Nasdaq was up 1.24%. Other tech stocks to do well were Facebook up 2.7%, Amazon up 2.1% and Netflix up 1.8%. The weakness in the DOW was thanks to trade war tensions which continued as China said that they would retaliate but urged the US to ‘calm down’. The market is still caught between a trade war dragging down future earnings and the current strength of the economy. In Europe major Indexes were lower off the back of a negative lead from Asia.

Traders will be focused on the all important monthly US employment data out tonight for further signs of upward pressure on jobs growth and inflation.

Cryptocurrencies are still feeling some heat as Bitcoin trades at $7559.7 up 0.96% while Ethereum is at $410.61 up 0.02% and Ripple is at $0.43291 down 1.45%.

The USD Index continues to find buyers on safe haven trading as trade war rhetoric continues. The Dollar also found continued buying pressure from an upbeat assessment from the US Federal Reserve. The AUD, which is seen as proxy for China growth due to Australias export reliant economy, found further selling pressure. The EUR and the GBP were also weaker against the USD as the GBP remains pressured on concerns that Britain will fail to secure a trade deal before it exits the EU.

Gold continued to edge lower as traditional safe haven buyers preferred the USD. Copper was lower as selling pressure continued to dominated the commodity as trade disputes look to escalate. Oil bounced as a report suggested that US oil stockpiles will fall in coming weeks after the recent data showed an unexpected increase.

Locally, the ASX200 was dragged lower as Asian markets extended losses in afternoon trade as China’s market was down over 3% as trade war fears gripped investors. RIO was weighed down by earnings that missed expectations and pressure on commodities. BHP was also sold lower as copper, iron ore and base metals suffered. The Bank of Japan said that it would purchase government bonds “promptly and appropriately” if yields continue to rise. Financials managed to cap the losses as the sector finished higher.

The ASX200 is expected to open up 20 points as the SPI200 followed the US higher in a strong session.

 

ECONOMIC DATA OUT TODAY (AEST) –

AUD  Retail Sales 11:30am

CNY  Caixin Services PMI 11:45am

EUR  French Government Budget Balance 4:45pm

EUR  German Final Services PMI 5:55pm

EUR  Final Services PMI 6pm

GBP  Services PMI 6:30pm

CAD  Trade Balance 10:30pm

USD  Non-Farm Employment Change, Unemployment Rate and Trade Balance 10:30pm

USD  ISM Non-Manufacturing PMI 12am

 

SPI200 INTRADAY LEVELS TO WATCH –