Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


IG Markets - Morning thoughts and opening prices


Good morning,

Risk sentiment was subdued through European and US trade with risk assets mostly losing ground, particularly in the equities space. There is a degree of caution being exercised ahead of the US earnings season and some key meetings among European leaders. After trading at the top end of the recent range, it just seems like market participants are reluctant to keep driving this market higher until we get the next catalyst. AUD/USD enjoyed a strong bounce off a key support level in yesterday’s session and rallied to a high of 1.022 in US trade. The pair’s recovery stalled at 1.022 and it now seems like it is headed back to test yesterday’s lows. EUR/USD remained in a relatively tight range around 1.297.

Ahead of the open, we are calling the Aussie market down 0.1% at 4479. There clearly isn’t much to drive this market in any direction at the moment. On the local economic calendar, today we have NAB business confidence and a speech by RBA Deputy Governor Lowe. This could be a source of volatility for the Aussie dollar as AUD/USD looks like it is headed back to yesterday’s lows. Further weakness in the AUD would actually be a positive for several local industries. Elsewhere in the region, Japan will be back online today after yesterday’s holiday. There is quite a bit on the economic calendar in Japan today with current account numbers and BOJ Governor Shirakawa on the wires.

On a stock level, we expect a firmer start for BHP Billiton with its ADR suggesting it will be up 0.6% at $33.44. Iron ore miners could get a lift from a 6% rise in iron ore prices to $110.40. It is now up 27% from the September lows. There was also a mild recovery in the gold price which could translate well for local gold names after struggling yesterday. Investors will continue to monitor Pharmaxis after yesterday’s share price rise. There has been speculation the company may be subject to a takeover from an offshore suitor.

MarketPrice at 7:30am AESTChange Since Australian Market ClosePercentage Change
AUD/USD1.01910.0029 0.28%
ASX (cash)4479-2 -0.05%
US DOW (cash)13571-10 -0.07%
US S&P (cash)1454.1-2.8 -0.19%
UK FTSE (cash)58497 0.12%
German DAX (cash)7300-52 -0.71%
Japan 225 (cash)8798-66 -0.74%
Rio Tinto Plc (London)29.85-0.02 -0.07%
BHP Billiton Plc (London)19.24-0.06 -0.31%
BHP Billiton Ltd. ADR (US) (AUD)33.440.19 0.58%
US Light Crude Oil (November)89.680.39 0.44%
Gold (spot)1775.23.8 0.22%
Aluminium (London)2080-7-0.32%
Copper (London)8179-8-0.09%
Nickel (London)18064-147-0.80%
Zinc (London)2256-5-0.23%

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.

STAN SHAMU
Market Strategist
www.igmarkets.com.au

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news