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

 


IG Markets - Morning Thoughts


IG Markets - Morning Thoughts

Risk assets were well bid in the European session as the positive momentum from Asian trade continued to support. Optimism that the S&P downgrade will push Spain closer to requesting a downgrade was the main sentiment driver. EUR/USD enjoyed a strong bounce off the lows from the Asian session and was back above 1.29, printing a high of 1.295. AUD/USD continued its run from the release of the local jobs numbers and topped out a touch above 1.029. Yesterday, we said that selling into strength is likely to be the preferred strategy by traders, particularly if we approach the 1.03 level. In US trade, risk assets got an initial boost from a better-than-expected unemployment claims reading. They dropped to 339,000 (versus a consensus of 368,000) and this was the lowest level in four years. However, the euphoria surrounding the data waned as risk assets pared gains and remained sidelined into the close of the US session.

Ahead of the open, we are calling the Aussie market up 0.2% at 4492. Based on yesterday’s close, the ASX 200 is down 0.2% for the week. Should we open where our call is suggesting, the market is essentially flat for the week. As a result, market participants will continue to monitor the wires for the catalyst that will drive us out of this holding pattern. In the last few sessions, the market has had to come off the lows to finish relatively flat after some negative leads from US trade. As a result it is difficult to gauge how investors will react to the early gains as it seems they are content buying equities on pullbacks. Unlike yesterday, there is no local economic data to look out for today. Elsewhere in the region, there is quite a lot on the calendar in Japan including a tertiary industry activity report and a speech by BoJ Governor Shirakawa. There is also some data due out of China over the weekend including trade balance, new loans and M2 money supply.

On a stock level, we expect a firmer start for BHP Billiton with its ADR suggesting it will be up 0.5% at $33.43. However, iron ore prices lost some ground, dropping to $115.80. Discovery Metals has rejected an $830 million takeover bid from a Cathay Fortune-led group citing it as inadequate. Iluka will be closely watched today as brokers react to its disappointing quarterly report from yesterday’s session. Borrowers will be watching ANZ Bank today as it is due to announce its interest rate following the RBA’s 25 basis point rate cut last week.


Market Price at 7:30am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0264 -0.0009 -0.08%
ASX (cash) 4492 9 0.19%
US DOW (cash) 13351 24 0.18%
US S&P (cash) 1434.7 5.4 0.38%
UK FTSE (cash) 5825 60 1.05%
German DAX (cash) 7269 80 1.11%
Japan 225 (cash) 8581 31 0.36%
Rio Tinto Plc (London) 30.72 0.71 2.37%
BHP Billiton Plc (London) 19.51 0.31 1.59%
BHP Billiton Ltd. ADR (US) (AUD) 33.43 0.18 0.54%
US Light Crude Oil (November) 92.47 1.00 1.09%
Gold (spot) 1767.3 3.2 0.18%
Aluminium (London) 2017 8 0.41%
Copper (London) 8221 49 0.59%
Nickel (London) 17725 -7 -0.04%
Zinc (London) 2184 -16 -0.71%

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.

www.igmarkets.com.au

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news