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 rallied on Friday despite a shortened trading day on Wall-Street. There was nothing specific driving risk assets higher, but it generally seems investors are looking at the US and European situation with a glass-half-full approach. Of course there are still a few hurdles ahead with the European finance ministers meeting later today and fiscal cliff talks continuing. Should both events be concluded successfully, one can only assume we will be in for a good run into the end of the year, and possibly get back to the levels we were trading in the lead up to the US presidential election. On the economic front, we continue to see a strong performance in US economic data, while China is stabilising. We finally saw glimpses of improvement in European economic data last week and this could have had a bigger influence on markets if it wasn’t for the Greece situation. There were some big moves in the risk currency space with AUD/USD rallying back above 1.04 to a high of 1.047. EUR/USD pushed through 1.29 and was just shy of 1.3 and remains fairly well bid ahead of the European finance ministers meeting.

Ahead of the open, we are calling the Aussie market up 0.5% at 4436. After the big improvement in risk appetite, it should be a good start to the week for the Aussie market. It will be a quiet day on the local economic front with nothing significant on the calendar. There will be a lot of pressure on European leaders to deliver when they meet today. On the upside, last week’s high of 4428 (in the underlying cash market) was the exact 38.2% retracement of the recent sell-off from 4581 to 4334, so a close above here could see the 61.8% retracement of the same move at 4487 come into play. Downtrend support drawn from the October 18 high intersects at 4471, so while this is unlikely to be tested today it is a level worth keeping on the radar.

On a stock level, we expect to see a firmer start for BHP Billiton, with its ADR pointing to a 0.4% rise to $33.90. Commodities had a solid session on Friday and this will be supportive of resource names. Gold was back above $1750 and this is likely to lead to a strong recovery in some of the precious metal stocks. Discovery Metals will be in focus after the board recommended shareholders to reject Cathay Fortune’s takeover offer. Cabcharge will be one to watch after a sharp sell-off on Friday due to some changes announced by the RBA concerning revised surcharging standards.


Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0455 0.0059 0.57%
ASX (cash) 4436 23 0.52%
US DOW (cash) 12984 123 0.96%
US S&P (cash) 1409.3 14.3 1.02%
UK FTSE (cash) 5822 29 0.51%
German DAX (cash) 7307 51 0.70%
Japan 225 (cash) 9422 55 0.58%
Rio Tinto Plc (London) 30.06 -0.04 -0.14%
BHP Billiton Plc (London) 19.45 0.04 0.22%
BHP Billiton Ltd. ADR (US) (AUD) 33.90 0.15 0.44%
US Light Crude Oil (January) 88.28 1.12 1.28%
Gold (spot) 1753.0 23.4 1.36%
Aluminium (London) 1983 43 2.24%
Copper (London) 7777 87 1.14%
Nickel (London) 16620 75 0.45%
Zinc (London) 1961 37 1.92%
Iron Ore 118.9 0.20 0.17%

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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news