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

 


IG Markets - Morning thoughts and opening prices

Good morning,

Risk assets were fairly choppy throughout European and US trade, but managed to edge higher into the close. Market participants continued to monitor the wires for a potential deal on Greece as European leaders meet. Anticipation of a positive outcome saw European markets finish in positive territory. In US trade, investors focused on Fed Chief Ben Bernanke’s comments regarding the potential impact of the fiscal cliff. This overshadowed some positive economic data which came in the form of better-than-expected housing starts (0.89 million versus 0.84 million consensus). Building permits data came in in line with expectations. EUR/USD continued its recovery from the early slump in yesterday’s Asian trade and continues to hold above 1.28 in anticipation of a favourable Greece outcome. A headline suggesting eurozone leaders are considering granting Greece a 10-year moratorium on interest payments on EFSF loans hasn’t seen a big reaction in the euro so far, but we are likely to start getting further comments as the meeting is concluded.

Ahead of the open, we are calling the Aussie market up 0.1% at 4390. There isn’t much on the economic calendar today, but investors will continue to focus on global macro-economic themes and local interest rate expectations. The RBA has kept the door open for further rate cuts but unless the global economic picture deteriorates further, a December rate cut remains unlikely. RBA Governor Glenn Stevens made a speech last night in which he reaffirmed the easing bias. However, this does not necessarily mean that further cuts are imminent, particularly with inflation likely to become a concern at some stage.

On a stock level, we expect to see a firmer start for BHP Billiton, with its ADR pointing to a 0.4% rise to $33.71. Commodities were mostly weaker, with oil taking a hit after having had a stellar run lately. Some analysts attribute the drop in oil to reduced concerns that the Middle-East tension will escalate further. The retail sector will be in focus today, with David Jones set to release first quarter sales ahead of the key festive trading period. CSL Limited has been downgraded to Sell (from Neutral) by Citi. The stock has had a stellar run all year and is now approaching the $50 mark. Traders and investors are likely to start getting nervous at these levels.

MarketPrice at 8:00am AESTChange Since Australian Market ClosePercentage Change
AUD/USD1.0388-0.0026 -0.24%
ASX (cash)43904 0.09%
US DOW (cash)1279027 0.21%
US S&P (cash)1389.84.1 0.30%
UK FTSE (cash)57468 0.14%
German DAX (cash)717050 0.71%
Japan 225 (cash)919848 0.52%
Rio Tinto Plc (London)30.280.02 0.08%
BHP Billiton Plc (London)19.36-0.06 -0.31%
BHP Billiton Ltd. ADR (US) (AUD)33.710.13 0.38%
US Light Crude Oil (December)87.10-2.02 -2.27%
Gold (spot)1728.2-5.3 -0.30%
Aluminium (London)1957-13-0.66%
Copper (London)7754-34-0.44%
Nickel (London)16530500.30%
Zinc (London)2167-35-1.60%
Iron Ore120.6-2.20-1.79%


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.

STAN SHAMU
Market Strategist
www.igmarkets.com

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news