The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (7:15am AEST)-

  • SPI200 overnight futures up 28 pts to 6264
  • SP500 up 22.05 pts to 2896.74
  • NASDAQ up 71.92 pts to 8017.90
  • FTSE100 closed Bank Holiday
  • DAX30 up 143.79 pts to 12538.31
  • GOLD futures (Dec) up $4.20 to $1217.50 an ounce
  • COPPER futures (Comex Dec) up $0.007 to $2.730 a pound
  • OIL futures (Nymex Oct) up $0.19 to $68.91 a barrel
  • CRB Index up 0.79 pts to 192.87
  • AUDUSD trading at 0.7349
  • EURUSD trading at 1.1680
  • GBPUSD trading at 1.2894
  • USDJPY trading at 111.0700

 

Companies of interest reporting today on the ASX –

In US a broad based rally pushed the SP500 and Nasdaq to record high closes as the US and Mexico come to a trade agreement. The DOW closed up another 259.29 points or 1.01% in a solid session with the SP500 up 0.77% and the Nasdaq also closing up 0.91%. The Tech sector was the biggest boost to the broader index as traders will look to talks with Canada and Europe for further trade and tariff news. In Europe traders also felt more comfort on the US and Mexico trade agreement as they become optimistic and look further down the line to Europe and China.

As the markets were discounting for trade risk, we expect to see any further positive news on trade lift markets as the bulls come back out to play.

The USD dollar continued to edge lower as traders factor in a potential slower pace to Fed Rate Rises after Powell said Friday the team was happy with a ‘gradual’ approach to monetary tightening. The EUR, GBP and AUD all continued the trend higher helped along by the weaker USD. Traders also have their eye on a flattening US bond yield curve to reduce support for the USD and also as history says that a flat curve proceeds a recession.

Gold continued to gain on a weaker USD and as some traders are betting that the precious metal may have found a floor. Copper also continued the push higher as traders see the selling pressure due to trade tensions starting to ease. The Oil buying story continued as traders pushed price higher supported by the USD and findings that oil producers cut output in July 9% more than expected.

Cryptocurrencies were green across the board with Bitcoin trading at $6740.5 up 0.92% while Ethereum is at $276.68 up 1.58% and Ripple trading at $0.32918 up 2.01%.

Locally, shares pushed higher to recover some of the recent lost ground as the ASX200 closed up 21.6 points. Intraday, buyers were happy to defend the 6240/6250 zone and push price up into the close. Advancing stocks outnumbered falling ones by 653 to 564 and 387 ended unchanged. Resources were the champions of the day after gold and base metals rallied while financials held up okay after a rocky start to the session. Political uncertainty abated which gave traders a reason to add more risk to their portfolios.

The ASX200 is expected to open up 25 points as the SPI200 follows the US higher to have a strong night.

 

ECONOMIC DATA OUT TODAY (AEST) –

JPY  BOJ Core CPI 3pm

EUR  M3 Money Supply and Private Loans 6pm

USD  Goods Trade Balance and Wholesale Inventories 10:30pm

USD  Consumer Confidence 12am

 

SPI200 INTRADAY LEVELS TO WATCH –