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

 


IG Markets - Morning Prices Nov 20

Good morning,

Markets were largely risk-on throughout European and US trade as optimism that US politicians would find middle ground on the fiscal cliff helped spur a rally. Confidence is growing that a deal can be reached, as politicians from both parties continue to make some positive comments on working together to come up with a solution. Better-than-expected existing home sales data also helped to lift sentiment along with optimism that Greece will receive the next tranche of aid. As a result we saw gains of around 2% and above in US and European equities. Risk currencies also echoed big moves with AUD/USD surging to a high of 1.0418 and remaining steady above 1.04. EUR/USD spiked to a high of 1.282 after having languished below 1.28 for a while.

Ahead of the open, we are calling the Aussie market up 0.6% at 4389. It is likely to be a typical risk-on day with cyclical names leading the charge higher. Recently beaten down names in the industrials, materials and consumer space are likely to experience the biggest gains, while defensive names underperform. On the economic calendar, we have the RBA’s monetary policy meeting minutes due out at 11.30am. After the RBA decided to keep rates on hold this month, the minutes will be highly sort after as investors search for clues on whether we will finish off the year with another rate cut. Following the RBA’s statement, which accompanied the last rate decision, it certainly seems like it is happy with the current rate setting going into next year. The commentary will put the Aussie dollar firmly in focus, with AUD/USD eyeing the 1.044 level. Elsewhere in the region, Japan will be closely watched with the BoJ’s monetary policy statement and press conference set to hit the wires.

On a stock level, we expect to see a firmer start for BHP Billiton, with its ADR pointing to a 1.6% rise to $33.76. After a strong session for commodities, we are bound to see gains across the board in the resource space. Arrium will be in focus after yesterday’s trading update. The stock has been upgraded by Deutsche Bank to Hold (from Sell) and we are likely to see other brokers react to the trading update. Qantas will also remain in focus with the AFR reporting that the Emirates tie-up could be in doubt if an alternative proposal emerges. The airline has been subject to several headlines recently and this might continue to keep some investors at bay. Boart Longyear has been downgraded to Underperform (from Neutral) following yesterday’s earnings downgrade.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0415 0.0037 0.36%
ASX (cash) 4389 27 0.62%
US DOW (cash) 12771 144 1.14%
US S&P (cash) 1386.9 20.1 1.47%
UK FTSE (cash) 5734 82 1.45%
German DAX (cash) 7119 105 1.50%
Japan 225 (cash) 9215 47 0.52%
Rio Tinto Plc (London) 30.25 0.91 3.09%
BHP Billiton Plc (London) 19.42 0.69 3.70%
BHP Billiton Ltd. ADR (US) (AUD) 33.76 0.55 1.64%
US Light Crude Oil (December) 89.14 1.31 1.49%
Gold (spot) 1732.6 9.8 0.57%
Aluminium (London) 1977 -13 -0.67%
Copper (London) 7780 -34 -0.44%
Nickel (London) 16428 50 0.31%
Zinc (London) 2194 -35 -1.61%
Iron Ore 122.8 0.00 0.00%

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.

www.igmarkets.com


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. 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