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

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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