The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT –

  • SPI200 overnight futures up 11 pts to 6229
  • SP500 down 20.30 pts to 2833.28
  • NASDAQ down 52.67 pts to 7839.11
  • FTSE100 down 74.76 pts to 7667.01
  • DAX30 down 251.76 pts to 12424.35
  • GOLD futures (Dec) down $0.70 to $1219.20 an ounce
  • COPPER futures (Comex Sep) down $0.021 to $2.745 a pound
  • OIL futures (Nymex Sep) up $0.97 to $67.78 a barrel
  • CRB Index down 0.73 pts to 191.69
  • AUDUSD trading at 0.7302
  • EURUSD trading at 1.1413
  • GBPUSD trading at 1.2758
  • USDJPY trading at 110.8300

The US closed lower as a free-fall in the Turkish Lira saw investors running for cover into safe haven assets. The DOW was down 196.09 points or 0.77% with the SP500 down 0.71% and the Nasdaq also down 0.67%. Turkey’s government has failed to raise interest rates in the face of a very inflationary environment which has led to concern over fiscal policy and ‘who’ is running the countries reserve bank. On top of rates, a flare up in tensions with the US has seen the Trump administration double tariffs on metals imports from Turkey. In Europe shares Indexes were hit by concern about European lenders’ exposure to Turkey which was questioned by the ECB. The flare up in tensions between the US and Turkey has made it seem difficult for global investors to remain in Europe.

Over the weekend, Turkey’s government said that institutions will take the necessary steps to support the Lira. They also said that an action plan has been prepared for banks small to mid sized businesses that are affected by exchange fluctuations. Turkish President Erdogan repeated his call for Turks to sell dollars and buy lira to shore up the currency, while telling business owners not to stock up on dollars.

Cryptocurrencies are holding up after a bout of serious selling pressure thanks to a potential Bitcoin ETF being delayed. Bitcoin is trading at $6353.8 down 0.91% with Ethereum trading at $319.92 down 1.63% and Ripple at $0.29691 down 3.99%.

The USD was again higher on a flight to safety as a free-fall in the Turkish Lira caused havoc with global markets. Traders sought the safety of US government bonds and the YEN away from European markets. The EUR, the GBP and the AUD where all lower pressured by the rise in the USD.

Gold continued to edge lower on a rise in the USD and no love from safe haven investors. Copper was also down as the banter between the US and China continued. Oil managed to bounce and take back some of its lost ground from the previous session.

Locally, the ASX200 finished lower Friday to close out the week on a negative note. The index was dragged lower by energy, industrials and the resources sectors. Declining stocks outnumbered rising ones by 622 to 577 and 362 ended unchanged. We expect some flow over of negativity into the ASX200 on the open as traders try to digest Fridays nights selling and how it may affect local share prices.

The ASX200 is expected to open flat to up 5 points as the SPI200 backs off from Thursday nights highs.

 

ECONOMIC DATA OUT TODAY (AEST) –

CNY  M2 Money Supply Tentative

CNY  New loans Tentative

 

SPI200 INTRADAY LEVELS TO WATCH –