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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news