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

 


IG - Morning Thoughts And Opening Prices

IG - Morning Thoughts And Opening Prices

Good Morning

Overnight the US market pulled back gains after reaching levels not seen since pre-GFC, with the S&P500 off 0.39% to 1460 as the US earnings season fast approaches. Alcoa will unofficially be the first company to report after the close of the US market tomorrow, with most analysts expecting around 3% growth in quarterly profits for S&P 500 companies. All but one sector of the top 500 companies fell last night, lead by utilities, energy and consumer staples. Bank of America lost 0.6% after releasing a statement to the market that it has agreed to refinance Fannie Mae’s $3.6 billion home-loan repurchasing claims as well as paying out $6.75 billion to repurchase residential mortgages sold to Fannie Mae. The deal ’will substantially resolve outstanding claims for compensatory fees between the two companies‘.

In Europe, all eyes were on Basel Switzerland last night as international regulators met to discuss international credit regulations. The committee agreed to relax some of the credit laws established over the previous years to allow growth to continue in the sector. This saw European banks rise with Credit Agricole up 3.5% in Paris and Commerzbank higher by 4.2% in Frankfurt. However, most other European sectors faded and saw the majors finish the day down. The FTSE, DAX and CAC were off about half of per cent.

It was a better night for commodities with speculators increasing their bullish activity as signs that both China and the US are growing. This saw commodities rise for the fourth consecutive week. The S&P GSCI index advanced 0.4% and sees it up 4.2% since reaching its three-month low in November, lead mainly by soft commodities such as soybeans and wheat as production is tightened. Gold however continued to weaken off 0.54% to $1647 an ounce, while WTI Crude held firm to remain at $93.21 a barrel.

The euro rose for a second consecutive day against the dollar after it dropped under the 50-day moving average. The euro moved up 0.3% to $1.3112 during US trade after falling to $1.2998 - its lowest level in a month. The yen also strengthened over night after reaching its lowest level against the greenback since July 2010. At the end of US trade, USD/JPD was around Y87.783.

Moving to our market and Nathan Tinker’s Whitehaven Coal will look to recover the remaining ground lost after yesterday’s hoax media release which saw AU$314 million in value being wiped off the company. In statements, both WHC and its main creditor ANZ have reaffirmed their commitment to WHC’s projects in New South Wales as ASIC and ASX look to deal with their third market manipulation hoax in 12 months.

Looking to trade this morning and despite having soft leads from Europe and the US, the ASX 200 futures see the Australian market matching up 0.18% to 4726 points. Iron ore continues to hold firm at $153 a tonne and BHP’s ADR is matching up this morning to 37.91 up 0.27% after coming off seven-month highs over the past few days. Pure plays such as FMG and AGO are also expected to perform well today. AUD/USD also looks to continue its good run with the risk-on trade definitely switched on, with it currently trading at $1.0503.

MarketPrice at 8:00am AESTChange Since Australian Market ClosePercentage Change
AUD/USD1.05060.0036 0.34%
ASX (cash)47269 0.18%
US DOW (cash)13388-5 -0.04%
US S&P (cash)1460.31.0 0.07%
UK FTSE (cash)6071-18 -0.30%
German DAX (cash)7734-26 -0.34%
Japan 225 (cash)10625-9 -0.08%
Rio Tinto Plc (London)35.76-0.37 -1.02%
BHP Billiton Plc (London)21.69-0.13 -0.61%
BHP Billiton Ltd. ADR (US) (AUD)37.910.10 0.27%
US Light Crude Oil (February)93.240.40 0.43%
Gold (spot)1648.35-10.0 -0.60%
Aluminium (London)20729 0.41%
Copper (London)8088-1 -0.02%
Nickel (London)17324-136 -0.78%
Zinc (London)2021-19 -0.93%
Iron Ore153.90.6 0.39%

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.

EVAN LUCAS
Market Strategist
www.igmarkets.com

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news