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IG Markets – Morning Prices 16 August 2010

IG Markets – Morning Prices

16 August 2010

US markets ended the week on the back foot once again succumbing to continuing concerns about the outlook for the global economy. Friday’s session saw the Dow Jones Industrial Average down 0.2%, the NASDAQ lower by 0.8% and the S&P 500 shedding 0.4%.

It was a terrible week for the major indices which all fell between 3.3% and 5% with the NASDAQ as the worst performer. Gloomy economic data over recent weeks saw the Fed deliver a more bearish assessment of the US economy but its lack of policy response after the FOMC meeting added to concerns the US may slip back into recession. Combined with softer-than-expected economic data out of China, investors seemed happy to lighten equity positions and wait things out in safer asset classes where capital preservation is more assured.

Locally, the Australian market is set to give back most of Friday’s gains with the market called to unwind 48 points or 11% lower at 4411. Having tempted buyers back into the market on Friday, the materials sector is likely to lead the market lower with weaker base metals prices during final US session of the week providing today’s expected headwinds. BHP’s ADR suggests the local stock will open 50c or 1.25% weaker at $39.90.

The energy, financial, and industrial sectors were all lower in the US session between 0.3% and 0.4% and hence are all likely to detract points today.
On the company front, Newcrest Mining and Bluescope Steel are the two headline names due out with earnings reports today.

Essentially though, we’re set to see a modest pullback today, with little to inspire investors to rush to hit the “buy” button. Cautious trading is likely to be evident today but we would hope to see support at 4400 should we fall that low.

Market Price at 7:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.8934 -0.0095 -1.05%
ASX (cash) 4411 -48 -1.09%
US DOW (cash) 10305 -67 -0.65%
US S&P (cash) 1078.8 -11 -0.99%
UK FTSE (cash) 5275 -19 -0.36%
German DAX (cash) 6112 -43 -0.70%
Japan 225 (cash) 9197 -61 -0.66%
Rio Tinto Plc (London) 32.77 0.12 0.35%
BHP Billiton Plc (London) 19.43 0.03 0.15%
BHP Billiton Ltd. ADR (US) (AUD) 39.90 -0.50 -1.25%
US Light Crude Oil (Sep) 75.62 -1.06 -1.38%
Gold (spot) 1214.4 -2.3 -0.18%
Aluminium (London) 2120 -52 -2.39%
Copper (London) 7190 -105 -1.44%
Nickel (London) 21400 -400 -1.83%
Zinc (London) 2055 -22 -1.06%
RBA Cash Rate to be raised by 25bp (Sep) (%) 2.00 0.00 0.00%

IG Markets provides round-the-clock CFD trading on currencies, indices and commodities. The levels quoted in this email are the latest tradeable price for each market. The net change for each market is referenced from the corresponding tradeable level at yesterday’s close of the ASX. These levels are specifically tailored for the Australian trader and take into account the 24hr nature of global markets.

ENDS


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