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 edged higher as some positive comments from US leaders calmed heightening concerns that the US had made little progress in fiscal cliff negotiations. Comments by US Speaker of the House John Boehner that he is optimistic about US budget talks saw markets pare earlier losses. President Obama was also quoted as saying he hopes to get the budget talks done by Christmas and he remains confident something will be done by year-end. This was in sharp contrast to comments by Senate majority leader Harry Reid suggesting little progress had been made in the previous session. With positive comments about the fiscal cliff negotiations hitting the wires, US equities brushed off some disappointing new home sales data. Sales fell to 368,000 while consensus was for them to rise to 387,000. EUR/USD had dipped below 1.28 but managed to bounce back to 1.294, while AUD/USD bounced off 1.043 and made its way back up to the 1.047 level.

Ahead of the open, we are calling the Aussie market up 0.3% at 4459. The ASX 200 traded at a high of 4461.7 this week and that will be the level to watch in the near term. On the local economic front, today we have private capital expenditure data due out with a 2.1% quarterly rise expected. As we approach the RBA’s interest rate decision next week, any local piece of data will be closely scrutinised. At the moment it seems like the decision will be a line-ball call. However, with all the recent developments in the global economy, the RBA seems more likely to take a wait and see approach. Following the moves in US trade, it is clear that any comments by US leaders on the fiscal cliff will result in some volatility and that we are in a headline risk environment. Once all the noise is taken out, it certainly seems like the global economy is in a better place and we are likely to start seeing markets mount a recovery into the end of the year.

On a stock level, we expect to see a softer start for BHP Billiton, with its ADR pointing to a relatively flat open at $33.98. The mining giant also has its annual general meeting today and this will be in focus as everyone looks for clues on the miner’s growth prospects, its opinion on the mining boom cycle and a potential leadership change. It was a tough session for commodities with a sharp drop in gold prices. The precious metal fell to a low of $1706 but has since recovered to around $1718. This is bound to affect some of the local gold plays in today’s session. However, most commodities finished well off their lows on the Boehner and Obama comments. Aristocrat Leisure will be one to watch today after a big move yesterday following the report of a strong result yesterday. The stock has been upgraded to outperform (from underperform) by Credit Suisse.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0480 0.0026 0.25%
ASX (cash) 4459 11 0.26%
US DOW (cash) 12980 101 0.78%
US S&P (cash) 1411.6 11.3 0.80%
UK FTSE (cash) 5820 29 0.50%
German DAX (cash) 7374 49 0.67%
Japan 225 (cash) 9338 19 0.20%
Rio Tinto Plc (London) 29.40 -0.39 -1.29%
BHP Billiton Plc (London) 19.34 -0.10 -0.50%
BHP Billiton Ltd. ADR (US) (AUD) 33.98 -0.02 -0.05%
US Light Crude Oil (January) 86.69 -0.52 -0.60%
Gold (spot) 1720.2 -20.5 -1.17%
Aluminium (London) 1999.5 -8 -0.39%
Copper (London) 7749 -33 -0.43%
Nickel (London) 16954 97 0.58%
Zinc (London) 2187 -15 -0.66%
Iron Ore 117.9 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.

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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news