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

 

'Irregular Accounting': Voluntary Suspension Of Fuji Xerox Govt Contracting

This suspension gives the Ministry of Business, Innovation, and Employment time to understand the full implications of the report from FUJIFILM Holdings into irregular accounting practices at FXNZ. More>>

ALSO:

MPI: Cow Disease Detected In NZ For First Time

MPI is responding to the detection of the cattle disease Mycoplasma bovis in a dairy herd in South Canterbury... The disease is commonly found in cattle globally, including in Australia, but it’s the first detection of it in New Zealand. More>>

South Island Flooding: Focus Moves To Recovery

As water recedes throughout flood-impacted areas of the South Island, Minister of Civil Defence Nathan Guy has praised the efforts of those who were involved in the response to the flooding... More>>

ALSO:

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fund For PPP Plans: Govt Embraces Targeted Rates To Spur Urban Infrastructure

The government's latest response to the Auckland housing shortage will see central government and private sector firms invest in 'special purpose vehicles' to fund essential roading, water and drains that Auckland Council can't fund without threatening its credit rating. More>>

ALSO: