The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT –

  • SPI200 overnight futures down 1 pts to 6220
  • SP500 up 17.71 pts to 2874.69
  • NASDAQ up 67.52 pts to 7945.98
  • FTSE100 up 14.27 pts to 7577.49
  • DAX30 up 28.949 pts to 12394.52
  • GOLD futures (Dec) up $18.30 to $1212.30 an ounce
  • COPPER futures (Comex Sep) up $0.0455 to $2.723 a pound
  • OIL futures (Nymex Oct) up $0.71 to $68.54 a barrel
  • CRB Index up 1.58 pts to 192.08
  • AUDUSD trading at 0.7329
  • EURUSD trading at 1.1622
  • GBPUSD trading at 1.2846
  • USDJPY trading at 111.2400

 

Companies of interest reporting today on the ASX – ADH, CLQ, FWD, GEM, IFN, JHC, MVF, OVH, PWH, RMS, SAS, SHJ, SHV and SKI.

The US ended the week on a strong note as the SP500 closed at new all time highs. The DOW closed up 133.37 points or 0.52% with the SP500 up 0.62% and the Nasdaq also closing up 0.86%. Traders were buoyed by Fed Chair Powell’s comments which confirmed expectations for a rate hike in September and then again in December as he is happy with a ‘gradual’ approach to rate rises. The Fed continues to focus on strong jobs growth and economic strength of the economy giving buyers confidence to add risk. In Europe major Indexes were more contained as US/China trade talks ended without any progress.

The USD dollar was lower giving up all of the previous sessions gains after Powell said that the Fed Funds rate was getting closer to ‘neutral’ potentially closing the door to some of the expected rate hikes in the future. The EUR, GBP and AUD were all higher as longer term sellers locked in gains on prospects that the US Fed is getting inflation under control. The GBP lagged as Britain continues to face Brexit issues.

Gold bounced back on USD weakness as traders took a shine to the precious metal. Copper also turned positive to close out the week as commodity indexes had a good session. Oil managed to lock in some gains as traders continue to focus on potential future supply concerns.

Cryptocurrencies were lower over the weekend after having a minor rally into the end 0f the week. Bitcoin is currently trading at $6694.3 down .027% while Ethereum is at $272.32 down 2.46% and Ripple is trading at $0.32292 down 1.41%.

Locally, shares reversed earlier losses as the ASX200 finished up 2.9 points after it was announced that the country finally had a new leader. Buyers tried to support price earlier in the day but political turmoil continued to pressure stocks as traders stayed on the sidelines to await a result. Banks were generally flat for the session, well all except WBC which was down 2.43%. Traders are still focused on the levels of bad debts when assessing banks going forward. Declining stocks outnumbered rising ones by 632 to 614 and 399 ended unchanged.

The ASX200 is expected to open flat as the SPI200 could not manage to follow the US higher in Friday nights session.

 

ECONOMIC DATA OUT TODAY (AEST) –

GBP  Bank Holiday

EUR  German Ifo Business Climate 6pm

 

SPI200 INTRADAY LEVELS TO WATCH –