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

 

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

"Don’t Give Up":
End Of Kick-Start Hits KiwiSaver Enrolments

ANZ said new enrolments for the ANZ KiwiSaver Scheme had dropped by more than 50% since the Government announced an immediate end to the $1,000 KiwiSaver kick-start incentive in the Budget last month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news