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

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

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