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

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news