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

The risk rally triggered by the Greek debt deal swiftly faded as market participants switched their focus to fiscal cliff concerns. European equities managed mild gains but were well off their highs as the positive sentiment from the Greek deal waned. US equities actually got off to a good start with some positive economic data supporting. Core durable goods orders and consumer confidence data came in better than expected, helping to shore up US equities early. However, comments by a US Senator suggesting there hasn’t been much progress in fiscal cliff negotiations dampened sentiment and weighed on US equities. With the Greece issue behind us for now, focus will be pinned on the fiscal cliff going into the end of the year. Risk currencies retreated from their highs in the Asian session with AUD/USD dropping back into the 1.044 support and EUR/USD was back in the low 1.29s after having traded at 1.3.

Ahead of the open, we are calling the Aussie market down 0.3% at 4442. The ASX 200 traded at a high of 4461.7 yesterday and that will be the level to watch in the near term. Yesterday we highlighted that the index will need to churn through resistance at 4432 (55-day moving average) and 4461 (the downtrend drawn from the October 18 high). The 4432 level will now be near-term support should the index extend its losses beyond our opening call. It is another fairly quiet day on the local economic front with construction work done being the only release on the calendar.

On a stock level, we expect to see a softer start for BHP Billiton, with its ADR pointing to a 1% fall to $33.87. It was a tough night for key commodities as the US dollar gained some ground and weighed. As a result we are likely to see resource names give up some of yesterday’s gains early. CSL Limited will be in focus again today after yesterday’s monster rally on the back of lifting its profit guidance for FY13. We are likely to continue hearing brokers react positively to the upgrade. Cabcharge has an annual general meeting today and it might deserve some attention after the recent surcharging standard changes by the RBA.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0442 -0.0040 -0.39%
ASX (cash) 4442 -15 -0.33%
US DOW (cash) 12883 -100 -0.77%
US S&P (cash) 1401.6 -9.0 -0.64%
UK FTSE (cash) 5791 -30 -0.51%
German DAX (cash) 7322 -35 -0.47%
Japan 225 (cash) 9357 -86 -0.91%
Rio Tinto Plc (London) 29.80 -0.14 -0.48%
BHP Billiton Plc (London) 19.44 -0.03 -0.14%
BHP Billiton Ltd. ADR (US) (AUD) 33.87 -0.33 -0.97%
US Light Crude Oil (January) 87.27 -0.76 -0.86%
Gold (spot) 1741.6 -8.4 -0.48%
Aluminium (London) 2006.5 9 0.46%
Copper (London) 7793.375 5 0.06%
Nickel (London) 16895 225 1.35%
Zinc (London) 2206.875 15 0.69%
Iron Ore 117.9 -0.30 -0.25%

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

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

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:

Get More From Scoop

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