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MARKET SNAPSHOT (7:15am AEST)-

  • SPI200 overnight futures unchanged at 6207
  • SP500 down 0.75 pts to 2857.70
  • NASDAQ up 4.66 pts to 7888.32
  • FTSE100 up 58.17 pts to 7776.65
  • DAX30 down 14.65 pts to 12633.54
  • GOLD futures (Dec) up $3.50 to $1221.80 an ounce
  • COPPER futures (Comex Sep) up $0.003 to $2.755 a pound
  • OIL futures (Nymex Sep) down $2.39 to $66.78 a barrel
  • CRB Index down 1.46 pts to 193.04
  • AUDUSD trading at 0.7432
  • EURUSD trading at 1.1611
  • GBPUSD trading at 1.2884
  • USDJPY trading at 110.9500

The US closed mixed as gains were capped and traders took some risk off the table as trade war concerns took a turn for the worse. The DOW was down 45.16 points or 0.18% with the SP500 down 0.03% and the Nasdaq holding to close up 0.06%. China is moving to apply additional import tariffs of 25% on $16 billion worth of US goods ranging from oil and steel products to autos and medical equipment. The move comes in response to the US adding 25% to an additional $16 Billion of goods from China beginning on the 23rd August. The concerns become important for traders as US Indexes edge up to new highs on a strengthening economy. In Europe shares ended lower on the news from China as trade sensitive stocks led the selling.

Cryptocurrencies go into free fall as Bitcoin is trading down 9.44% at $6292.2. Ethereum is at $355.19 down 8.55% and Ripple is trading at $0.32798 down 18.62%. Prices plunged after the SEC in the US said that they will be postponing a ruling on the proposed bitcoin ETF.

The USD dipped again against a basket of major currency pairs after initially being in positive territory after Chinas tariff news release. The EUR ended the session with minor gains while the GBP was lower as traders ramped up bets that Britain will leave the EU without any agreement. The AUD managed to bounce as Chinese import data came in positive yesterday and copper held onto further gains.

Gold managed to close the session on a positive note giving the bulls some confidence. Copper also managed to hold on to previous sessions gains as BHP continue to struggle with unions at the Chilean copper mine which may see downward pressure on global supply. Oil fell as recent buyers locked in some gains after US inventory data, although showing a drop in stockpiles, came in less than expected. China demand for Oil also slowed to pressure the commodity lower.

Locally, the ASX200 managed to close up 14.6 points as declining stocks outnumbered rising ones by 593 to 578 and 386 ended unchanged. Materials and miners gained on strong import data from China showing iron ore imports rebounded in July. Financial stocks were higher with CBA leading the way rising 2.6% after they reported a fall in profit less than expected by the market. AMP found some bargain hunters to rally 3.9% after reporting its worst first-half net profit in 15 years as traders believe that the worst is over. Energy was also stronger for the session although expect prices to come under fire today as crude oil falls overnight.

The ASX200 is expected to open flat as buying is capped on the SPI200 as trade war concerns continue.

 

ECONOMIC DATA OUT TODAY (AEST) –

CNY  CPI and PPI Data 11:30am

EUR  ECB Economic Bulletin 6pm

USD  PPI Data and Unemployment Claims 10:30pm

USD  Final Wholesales Inventories 12am

 

SPI200 INTRADAY LEVELS TO WATCH –