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 equities see-sawed around the flat line amidst ongoing discussions over the US fiscal cliff. With Democrats quick to reject the Republicans’ $2.2 trillion dollar deficit reduction plan because it did not involve any tax hikes for the wealthy, the markets faced another day of political gridlock and hence finished effectively unchanged.

With little in the way of leads from offshore markets and fiscal cliff discussions continuing in earnest, the Australian market is set to focus on local issues today, namely when and how much of yesterday’s rate cut will be passed on to consumers; will it be enough to help out the Christmas shopping season; what to make of the stubbornly high AUD and what will today’s GDP data reveal?

Given the sell-off we saw yesterday after the RBA decision, we are looking at a slight correction on the open this morning with the ASX 200 set to unwind seven points or 0.15% higher at 4510.

It was perhaps a little confusing yesterday to see the Aussie market fall after the rate cut and the AUD rise, but in essence it’s all about positioning and perception. Everyone was short AUD heading into the rate cut, the statement was relatively neutral and gave no clear evidence of imminent further easing, so it was not that surprising to see the AUD rally as ‘shorts’ closed positions. Also, why did the market fall from -0.2% to -0.6%? Part of that was due to the retailers which you’d think would have been among the biggest beneficiaries of a cut. Myer and David Jones were up close to 5% and 2% respectively before the cut, yet finished flat. Why? Maybe the market figured (or realised) the flow-through effects of a December rate cut will be too late to influence the Christmas shopping period? That’s why we suggested heading into the November RBA decision that an earlier cut would have been more beneficial to the consumer and thus the economy.

Outside of today’s Q3 GDP data at 11.30am, where the market is looking for a 0.6% print, it’s appearing like another relatively lacklustre and directionless day.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0476 0.0034 0.33%
ASX (cash) 4508 4 0.10%
US DOW (cash) 12960 29 0.22%
US S&P (cash) 1409.6 2.8 0.20%
UK FTSE (cash) 5868 15 0.26%
German DAX (cash) 7446 41 0.55%
Japan 225 (cash) 9408 -22 -0.23%
Rio Tinto Plc (London) 31.30 0.10 0.33%
BHP Billiton Plc (London) 19.51 -0.15 -0.74%
BHP Billiton Ltd. ADR (US) (AUD) 34.27 0.01 0.03%
US Light Crude Oil (January) 88.42 -0.25 -0.28%
Gold (spot) 1697.45 -12.6 -0.74%
Aluminium (London) 2091.00 -16 -0.74%
Copper (London) 8031.25 53 0.66%
Nickel (London) 17480.00 111 0.64%
Zinc (London) 2236.75 0 -0.02%
Iron Ore 117.1 1.80 1.56%

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 Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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