Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


IG -Morning Thoughts And Opening Comments

IG -Morning Thoughts And Opening Comments

Good morning

Overnight, US markets posted moderate losses, extending the negative momentum established after the previous session’s FOMC decision and statement. This also occurred amidst ongoing jitters over the status of fiscal cliff negotiations.

It appears markets are still recalibrating their future interest rate expectations in light of the Fed’s decision to move from a ‘calendar-based’ timeframe to a ‘data-based’ timeframe for determining monetary policy. With these new economic parameters in place (unemployment greater than 6.5%/inflation less than 2.5%), markets now have more definitive goal posts to focus on rather than some distant date nearly three years down the track. This has numerous market players speculating that these new metrics may be triggered before the previously advised ‘late-2015’ and thus factoring in an earlier-than-expected tightening of monetary policy.

In addition to these tighter monetary policy concerns, investors also seemed to express heightened disappointment and frustration over the progress on the fiscal cliff negotiations. Once again, the US session featured Republicans and Democrats sniping at each other and stubbornly refusing to give ground on their main ideological stances – Republicans on taxes and Democrats on spending and entitlements. Many in Washington expressed the view that a deal looks further away than it did 48 hours ago.

Turning to the local market, the ASX 200 is set to begin the final trading day of the week on the back foot with a marginal loss on the open – down 10 point or 0.2% at 4572. In contrast to the last few days, materials names are expected to take a breather today with a slight pullback on the cards after modest but broad weakness across most commodity markets last night. While iron ore prices once again edged higher (and now sit at $124.40), most base metals were weaker with BHP’s ADR suggesting at 0.4% lower open at $35.86 for our largest company. While materials names may open lower, the HSBC Flash Chinese manufacturing PMI print just after midday is likely to dictate sentiment heading in to the afternoon. As with most Fridays, traders are likely to be cautious today with many probably happy to lighten exposures heading in to the weekend, particularly with the broader market oscillating around its highs for the year.

MarketPrice at 8:00am AESTChange Since Australian Market ClosePercentage Change
AUD/USD1.0524-0.0004 -0.04%
ASX (cash)4578-5 -0.12%
US DOW (cash)13167-108 -0.81%
US S&P (cash)1423.1-11.3 -0.78%
UK FTSE (cash)5923-7 -0.12%
German DAX (cash)7578-36 -0.47%
Japan 225 (cash)9745153 1.60%
Rio Tinto Plc (London)33.390.30 0.90%
BHP Billiton Plc (London)20.720.18 0.86%
BHP Billiton Ltd. ADR (US) (AUD)35.86-0.14 -0.40%
US Light Crude Oil (January)86.230.41 0.48%
Gold (spot)1697.08-13.8 -0.81%
Aluminium (London)211840.20%
Copper (London)8043-63-0.78%
Nickel (London)17663-118-0.66%
Zinc (London)229740.15%
Iron Ore126.41.401.12%

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.

CAMERON PEACOCK
Market Strategist
www.igmarkets.com

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news