The Morning Jumpstart

OVERNIGHT MARKET SNAPSHOT (7:15am AEST)-

  • SPI200 overnight futures down 3 pts to 6297
  • SP500 closed
  • NASDAQ closed
  • FTSE100 up 72.18 pts to 7504.60
  • DAX30 down 17.65 pts to 12346.41
  • GOLD futures (Dec) up $2.60 to $1207 an ounce
  • COPPER futures (Comex Dec) down $0.010 to $2.655 a pound
  • OIL futures (Nymex Oct) up $0.34 to $70.11 a barrel
  • CRB Index closed
  • AUDUSD trading at 0.7213
  • EURUSD trading at 1.1617
  • GBPUSD trading at 1.2870
  • USDJPY trading at 111.0800

 

Companies of interest reporting today on the ASX – BGS, BOE, GSC, VKA, VRC.

In the US major Indexes were closed for Labor Day holiday while emerging markets continue to come under pressure as Turkeys inflation data out showed a spike to almost 18%. Trade concerns were the underlying tone of the market that keep buyers on the sidelines not wanting to add risk to their portfolios. The US is due to apply $200 Billion of tariffs on China imports on Thursday and has yet to hammer out a deal with Canada over NAFTA. In Europe shares were mixed as the FTSE pushed higher thanks to underlying weakness in the currency while the DAX was lower on trade concerns.

The USD was relatively flat for the session but did find safe haven support from fears that emerging markets will continue to sell off. The EUR and AUD were higher while the GBP pushed lower continuing to be hampered by a hard Brexit after comments by the EU’s chief Brexit negotiator saying that he was “strongly opposed” to British proposals on future trade ties after it leaves the EU.

Gold edged higher overnight although price lacked any lead from the USD in a quiet session. Copper continued to come under pressure on global trade issues and will continue to do so as long as there is no resolution on the trade front with China. Oil bounced back to close above $70 a barrel.

Cryptocurrencies held up around the same levels as the weekend with Bitcoin currently trading at $7293.4 up 0.22%. Ethereum is at $290.66 down 1.12% and Ripple is at $0.33739 down 1.21%.

Locally, the ASX200 closed slightly lower yesterday as traders remain cautious ahead of any further news on trade concerns. Materials shares lost ground along with Banks as majors start to lift mortgage rates. Declining stocks outnumbered rising ones by 667 to 550 and 386 ended unchanged.

The ASX200 is expected to open flat after the SPI200 spent the night choppy around in a narrow range with no direction from the US. Traders will be focused on the RBA interest rate announcement due out today at 2:30pm along with the RBA statement.

 

ECONOMIC DATA OUT TODAY (AEST) –

AUD  Current Account 11:30am

AUD  Cash Rate and RBA Statement 2:30pm

GBP  Construction PMI 6:30pm

AUD  RBA Gov Lowe Speaks 7:30pm

GBP  Inflation Report Hearings 10:15pm

USD  ISM Manufacturing PMI 12am

 

SPI200 INTRADAY LEVELS TO WATCH –