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IG Markets Morning Report

IG Markets Morning Report

Good morning,

On Wall Street overnight, both the S&P 500 and NASDAQ hit fresh two-year highs before succumbing to late session profit taking. Once again, it was a lackluster session at best with thin volumes the order of the day amid a lack of economic data and trading incentives.

The tech-heavy NASDAQ and S&P 500 were the top performers, both up 0.3% while the Dow Jones Industrial Average slid 0.1%.

Locally, the ASX 200 is called to open the session 0.3% higher at 4749 following the pretty quiet session overnight Once again, it looks like the materials and energy sectors will see the most activity.

The energy sector was the best performer in US trade overnight, rising 0.7% after Crude Oil futures rose 0.8% to US$89.19 per barrel since our 4.30pm close yesterday. ConocoPhillips was the top gainer, up 1.4% while Chevron and Exxon Mobil added 0.4% and 01% respectively. A lot of commentators are now saying we’ll see oil north of US$100 per barrel in the not too distant future as the recovery spurs further demand.

The materials sector should be reasonably well bid after the US basic materials sector rose 0.4%. On the London Metals Exchange, base metals were mostly higher, with Aluminium the best while in normal equities trade, Rio Tinto and BHP Billiton finished 0.1% and 0.5% firmer respectively. However, BHP Billiton’s ADR is only calling the local name flat at $44.83 on the open.

Elsewhere, the consumer discretionary may see some buying interest after the discretionary sector in the US put in a good session, rising 0.6%. Elsewhere, the industrials, consumer staples and financial sectors all finished within 0.1% of the flat line.

In summary, it looks like another quiet session as the trading year winds up. In terms of economic data, all eyes will be focused on the 11.30am release of the latest RBA monetary policy meeting minutes; although these have the potential to move markets, we’re not expecting any surprises.

In the currency market, the AUDUSD finished yesterday’s session on a positive note, closing the day at 0.9933 after trading as high as 0.9948 earlier. However, the EURUSD didn’t fare as well, declining to a low of 1.3094 before settling around the 1.3118 level.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9937 0.0065 0.66%
ASX (cash) 4749 12 0.25%
US DOW (cash) 11475 10 0.08%
US S&P (cash) 1247.1 7 0.56%
UK FTSE (cash) 5899 33 0.56%
German DAX (cash) 7028 63 0.90%
Japan 225 (cash) 10258 45 0.44%
Rio Tinto Plc (London) 44.22 0.04 0.09%
BHP Billiton Plc (London) 25.12 0.12 0.48%
BHP Billiton Ltd. ADR (US) (AUD) 44.83 0.01 0.02%
US Light Crude Oil (Feb) 89.19 0.75 0.84%
Gold (spot) 1384.1 1.4 0.10%
Aluminium (London) 2366 27 1.15%
Copper (London) 9200 78 0.86%
Nickel (London) 24750 -50 -0.20%
Zinc (London) 2290 20 0.88%
RBA Cash Rate to be raised by 25bp (Feb) (%) 7.50 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.

Please contact IG Markets if you require market commentary or the latest dealing price.


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