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

 

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