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

Overnight, US stocks finished only modestly higher as the US ‘fiscal cliff’ circus kicked into high gear. After a convincing move higher in the previous session on the back of some encouraging words from President Obama and Republican leader John Boehner, overnight trade saw both parties once again accusing the other for a lack of progress and a refusal to put anything substantive on the table. As each side of party leaders held press conferences to point the finger across the aisle, markets pulled back from their earlier highs to finish with modest gains. One prominent commentator described the day’s event as being akin to a skit from ’Saturday Night Live‘, with many now convinced that negotiations will mirror that of last August’s ‘debt ceiling’ disaster and go right down to the wire. As a result, a choppy last month of the year is probably the most likely scenario, disappointing those hoping for a Santa Claus rally.

Unfortunately, the day’s political dramas overshadowed another day of pretty encouraging US economic data. Pending home sales rose 5.2% in October, surging to their highest level in more than five years, while Q3 GDP was revised up to an annualised pace of 2.7% from a previous level of 2%. Weekly jobless claims also continued to recover from their post-Hurricane Sandy spike, falling to 393,000 from 416,000. The big fear however, is that all the improvement in recent US economic data could be jeopardised and reversed if lawmakers fail to promptly resolve the fiscal cliff predicament.

Turning to the local session, the ASX 200 is set to finish the last trading day of the week on the front foot opening approximately 27 points or 0.6% higher at 4503, the benchmark’s first move above the 4500 level since November 8. Gains are expected to be relatively broad based, but paced once again by the major miners. With base metals broadly higher and a slight risk on bias to trade, BHP’s ADR is calling the local stock up 1.2% at $34.61. However, as is always the case on a Friday, particularly in a volatile market environment, investors are expected to be cautious. They could very well decide to close positions heading into the weekend, preferring to see how European and US markets finish their weeks, before looking at the market with a fresh set of eyes on Monday. Investors may also want the benefit of seeing European CPI and employment data, Chicago PMI and the latest Chinese manufacturing PMI print, all due out after our close.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0432 -0.0042 -0.40%
ASX (cash) 4503 25 0.55%
US DOW (cash) 13024 1 0.01%
US S&P (cash) 1418.3 1.5 0.11%
UK FTSE (cash) 5868 30 0.51%
German DAX (cash) 7397 -18 -0.24%
Japan 225 (cash) 9453 43 0.46%
Rio Tinto Plc (London) 30.88 1.48 5.02%
BHP Billiton Plc (London) 19.71 0.37 1.91%
BHP Billiton Ltd. ADR (US) (AUD) 34.61 0.40 1.18%
US Light Crude Oil (January) 87.78 0.95 1.09%
Gold (spot) 1725.8 5.8 0.34%
Aluminium (London) 2059 54 2.67%
Copper (London) 7905.75 117 1.51%
Nickel (London) 17021.5 19 0.11%
Zinc (London) 2220.25 25 1.14%
Iron Ore 116.9 -1.00 -0.85%

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

 

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news