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

 


IG - Morning thoughts and opening prices 15/1/13

All eyes are firmly on Federal Reserve Chairman Ben Bernanke this morning, as investors look to take leads from his directives. The S&P 500 was little changed overnight, snapping a two-week uptrend to finish slightly lower, down 0.07% to 1470 points as US tech stocks opened the door to the US reporting season. Apple had the biggest effect on the S&P 500, with the world’s most valuable company falling 3.2% on reports it’s curbing its production of the new iPhone 5 due to weak demand. Personal computer company Dell on the other hand pared the losses after the company announced it was in buy-out talk with private equity firms. We see Dell as one of the first of many M&A deals for 2013 after two-years of very low volumes. Increased M&A activity brings additional capital to the table and moves dormant funds back to the markets that have otherwise been parked on the sideline. In the medium-term, watch for data showing increases in consumer spending and demand, as well as advances in energy and raw materials; M&A activity will pick on these indicators. Known take-over targets are already being pursued again this year, with Australian surf wear company Billabong receiving a $526.8 million from a consortium of private investors, including clothing giant VF Corp after-market. Watch for increased M&A activity in energy and materials with the likes Beach Petroleum (BPT), Fortescue Metals (FMG) and Atlas Iron (AGO) all looking cheap on fundamentals.

Risk currencies continue to be supported, with AUD/USD rising further overnight, up 0.3% to $1.0567 ahead of Bernanke’s speech. Technical trades have repositioned their support with resistance levels for the Aussie dollar moving to $1.0494 and $1.0625, with bullish views on better-than-expected export results from China and data showing the US is self-healing. Remember AUD/USD is a quasi-play on China and the new-look leadership team is seeking to start its tenure on the front foot. With currency markets continuing to lead equities, we would look to buy dips in AUD/USD for short-terms trades. The euro has broken out even further this morning as short positions continue to unwind. The euro is up against all its major trading pairs as the ECB looks to continue to stabilise the region and sees ’positive-contagion‘ as a constant theme for 2013. EUR/USD is currently up 0.3% to $1.338 and EUR/GBP is higher by 0.64% to £0.8324. The pound however continues to fall as investors speculate that Britain’s CPI figures will underperform when released later today and a speech from BOE governor Mervyn King is likely to show slightly bearish views. GBP/USD is off 0.33% to $1.0608 and is trending lower as the British economy stutters.

Moving to the open and Asian markets will have one eye on the Fed this morning and the other firmly on China’s fourth-quarter growth figures being released on Friday. We are calling the ASX 200 flat this morning as the market continues to tread water, potentially opening at 4717 points. There are no real additional newswires expected to move the market either way today. We see it moving lower today with mining stock continuing to drag the market down, with the 4700 level to be tested later on. Commodities were down heavily in London overnight with Copper and Aluminium falling after four days of gains. BHP’s ADR is currently matching down 0.43% this morning at $36.41, as investors wait for further news from China. One sector to keep an eye on this morning will be energy, as WTI crude continues to surge ahead, up 0.6% to $94.14 a barrel. The energy sector has been a major laggard on the Australian market and the upward movement in oil may see some increased movement here in the short term.

MarketPrice at 8:30am AESTChange Since Australian Market ClosePercentage Change
AUD/USD1.05670.0010 0.10%
ASX (cash)4719-1 -0.02%
US DOW (cash)13504-5 -0.03%
US S&P (cash)1469.7-3.9 -0.26%
UK FTSE (cash)6113-24 -0.39%
German DAX (cash)7735-3 -0.04%
Japan 225 (cash)10999197 1.82%
Rio Tinto Plc (London)34.750.06 0.19%
BHP Billiton Plc (London)20.760.00 0.02%
BHP Billiton Ltd. ADR (US) (AUD)36.41-0.16 -0.43%
US Light Crude Oil (February)94.660.53 0.56%
Gold (spot)1667.402.2 0.13%
Aluminium (London)2057-50 -2.38%
Copper (London)8008-76 -0.94%
Nickel (London)17333-262 -1.49%
Zinc (London)2297-19 -0.81%
Iron Ore154.6-0.3 -0.19%

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

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news