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

Markets recovered yesterday as the risk tone improved in European and US trade. It was a fairly quiet European session but event risk ramped up in US trade with plenty of releases on the calendar. Retail sales rose 1.1%, beating expectations of a 0.7% gain. However, the Empire State manufacturing index slightly disappointed, shrinking for the third month in a row. On the earnings front, Citigroup was a highlight, jumping 4.5% after its earnings topped estimates. There was a lot of scepticism ahead of the US reporting season and so far the results haven’t actually been bad at all. This could help instil some confidence in investors going into year end. There was certainly a significant recovery in some of the risk currencies after a woeful start to the Asian session. EUR/USD snapped back above 1.29 and closed US trade at around 1.295, while AUD/USD surged from 1.02 to close at around 1.025. This momentum is likely to carry through to the Asian session with equities in for a firmer start.

Ahead of the open, we are calling the Aussie market up 0.7% at 4513. This would see us test the recent high of 4512.8 which is near-term resistance. However, it is difficult to see the local market maintain gains through that resistance level unless the miners participate in the rally. Another relatively subdued session for commodities could weigh on the resource names. On the local economic front, today we have the RBA’s monetary policy minutes due out. This may have some bearing on the AUD as market participants search for hints of how long this easing cycle will last. We are likely to continue seeing choppy trading in the risk space ahead of the EU summit and a swathe of data releases from China later in the week.

On a stock level, we expect a relatively flat start for BHP Billiton with its ADR suggesting it will rise 0.1% at $33.39. Rio Tinto will be in focus with its production report due out at 3:00pm Sydney time. Iron ore prices were down again as the momentum from last week continues to wane. However, any consolidation above $100 will be positive going forward. Gold slumped along with other precious metals and this could see related stocks underperform. Financials are likely to outperform today as we continue to see impressive reports from their US peers.

Market Price at 7:30am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0254 0.0034 0.34%
ASX (cash) 4513 29 0.65%
US DOW (cash) 13427 113 0.85%
US S&P (cash) 1439.7 14.1 0.99%
UK FTSE (cash) 5831 45 0.78%
German DAX (cash) 7300 60 0.83%
Japan 225 (cash) 8635 64 0.75%
Rio Tinto Plc (London) 29.73 -0.50 -1.65%
BHP Billiton Plc (London) 19.27 -0.09 -0.44%
BHP Billiton Ltd. ADR (US) (AUD) 33.39 0.04 0.11%
US Light Crude Oil (November) 91.79 0.68 0.74%
Gold (spot) 1736.7 -8.4 -0.48%
Aluminium (London) 1975 -4 -0.19%
Copper (London) 8127 38 0.47%
Nickel (London) 17200 203 1.19%
Zinc (London) 2116 -13 -0.62%


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

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news