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IG Markets - Morning thoughts and opening prices
Good morning,
In US trade, markets advanced following stronger-than-expected manufacturing PMI data out of China, the UK and the US. It was an impressive start to the quarter, with US ISM manufacturing coming in at a better-than-expected 53.4. This saw US equities recover from earlier losses.
Among the major averages, the Dow Jones Industrial Average was up 0.4% at 13264. The S&P was 0.8% higher at 1419, whilst the NASDAQ climbed 0.9% to finish at 3120. This was the Dow’s highest level since December 2007.
Commodities rallied, spurred by the official China PMI (March) which came in at 53.1. Copper was up nearly 2.5% while NYMEX Crude jumped over 2.0%. BHP’s ADR is pointing to a 0.9% gain at the open after a strong night for commodities. We are likely to see a similar scenario to what we saw yesterday, with strength across the resource space and weakness everywhere else. AUD/USD was underpinned by the strong commodity-related gains and is trading around 1.041 after having lost significant ground through most of the Asian session yesterday. The pair will be in focus today with some big economic announcements due out.
Ahead of the open, we are calling the Aussie market up 0.4% at 4348. The main story of the day will be the RBA’s cash rate decision, which is due out at 2.30pm today. Many analysts expect the RBA to remain cautious and stay put this month. What will be in focus is the accompanying statement, as analysts look for hints on what the RBA will do going forward. If they don't cut rates today and leave their statement largely unchanged, the AUD could get a boost. Apart from the RBA decision we also have retail sales data due out and China non-manufacturing PMI to look out for.
| Market | Price at 8:30am AEST | Change Since Australian Market Close | Percentage Change |
| AUD/USD | 1.0423 | 0.0019 | 0.18% |
| ASX (cash) | 4348 | 19 | 0.44% |
| US DOW (cash) | 13243 | 67 | 0.51% |
| US S&P (cash) | 1416.0 | 10.0 | 0.71% |
| UK FTSE (cash) | 5880.0 | 103 | 1.78% |
| German DAX (cash) | 7059.0 | 131 | 1.89% |
| Japan 225 (cash) | 10072 | -38 | -0.38% |
| Rio Tinto Plc (London) | 35.56 | 1.10 | 3.19% |
| BHP Billiton Plc (London) | 19.65 | 0.58 | 3.04% |
| BHP Billiton Ltd. ADR (US) (AUD) | 35.42 | 0.30 | 0.85% |
| US Light Crude Oil (May) | 105.09 | 1.74 | 1.68% |
| Gold (spot) | 1679.0 | 18.0 | 1.08% |
| Aluminium (London) | 2130.00 | 4 | 0.19% |
| Copper (London) | 8641.00 | 196 | 2.32% |
| Nickel (London) | 18225.00 | 400 | 2.24% |
| Zinc (London) | 2007.00 | 7 | 0.35% |
| RBA Cash Rate to be decreased by 25bp (Apr) (%) | 33.00 | 0 | 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.
ENDS
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