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 mixed on Friday with US equities getting a lift from another round of positive economic data, while Greece concerns weighed on European equities. Greece remains in a bad place at the moment, with some saying it could run out of funding within weeks. Apart from Europe, the rest of the world seems to be in a better place with economic releases from the US and China showing strong signs of improvement. Consumer sentiment data in the US came in well above expectations and lifted risk assets in US trade. China data from the weekend showed a big jump in the trade surplus, with exports rising at the fastest pace in five months. AUD/USD came off lows at around 1.036 and went on to retest 1.04. However, EUR/USD was capped by Greece fears but has managed to hold on to 1.27.

Ahead of the open, we are calling the Aussie market relatively flat at 4457. AUD/USD has gotten a good start to the week and gapped higher from Saturday’s close in response to China’s data releases. Positive China data is likely to give risk a kicker this morning and we could see cyclical names get off to a strong start. On the local economic front, we have home loans data and NAB business confidence data due out at 11.30am. However, this is likely to be a sideshow to another Chinese data dump this week, with the M2 money supply and new loans data due at some stage over the next couple of days. Elsewhere in the region, there is plenty of data out of Japan with GDP, tertiary industry activity, machine orders and a speech by BoJ Governor Shirakawa all on the calendar. This is likely to result in a big day for regional currencies, with some key levels being tested.

On a stock level, we expect to see a mildly softer start for BHP Billiton, with its ADR pointing to a 0.6% fall to $34.26. Commodities were mixed with some strong gains for oil, while iron ore edged higher and extended its gains above US$120. This will put the local energy names firmly in focus, while confidence will continue to return to the iron ore names. Lynas shares will be one to watch as the stock is set to return to trade after a favourable ruling on its operating licenses. The company is also looking to raise $200 million to fund the completion of its processing facility in Malaysia. We also have Incitec Pivot and Orica reporting today.

Market Price at 9:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0395 -0.0027 -0.25%
ASX (cash) 4457 -5 -0.11%
US DOW (cash) 12812 -54 -0.42%
US S&P (cash) 1379.7 -4.6 -0.33%
UK FTSE (cash) 5764 -10 -0.18%
German DAX (cash) 7159 -60 -0.84%
Japan 225 (cash) 8740 -34 -0.38%
Rio Tinto Plc (London) 30.99 0.15 0.48%
BHP Billiton Plc (London) 19.52 -0.01 -0.05%
BHP Billiton Ltd. ADR (US) (AUD) 34.26 -0.20 -0.58%
US Light Crude Oil (December) 86.07 0.66 0.77%
Gold (spot) 1731.3 -3.6 -0.21%
Aluminium (London) 1921 -9 -0.46%
Copper (London) 7570 -120 -1.56%
Nickel (London) 15950 -282 -1.73%
Zinc (London) 2199 -18 -0.80%
Iron Ore 122.1 0.70 0.58%

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

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