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,

Risk assets continued to exhibit signs of a breakdown in the correlations we saw last year. Although risk assets mostly gained ground, there was no dominant theme in place like we used to see last year. Once again it was a fairly quiet session on the economic data front and as a result market participants focused on US earnings for some direction. Positive earnings from the likes of Pfizer helped drive markets higher, with the S&P recording its tenth positive session out of 11. Looking at the FX space, EUR/USD broke out of the recent range and went on to test the 1.35 level. The pair is still hanging around there and with the current momentum we wouldn’t be surprised to see it push through 1.35 in Asia today. AUD/USD continued to drift higher and is just testing the 1.047 region. We feel the pair might encounter some resistance in the 1.047 to 1.05 region, as it was a previous support zone for the pair. This could result in some near-term weakness for the pair. USD/JPY has remained range bound at around 90.7, with limited data flow out of Japan. The Fed meeting tomorrow morning will be key for these FX pairs going forward.

Ahead of the open we are calling the Aussie market up a couple of points at 4891. Yesterday’s high of 4897 will be the key level to watch in the near term. The local market has gained ground for nine consecutive sessions and it’ll be interesting to see if we can maintain that run today given the lack of local drivers. There is nothing to look out for on the local economic calendar. Yesterday’s gains were mainly pinned on the banks and as long as market perceptions of downside pressure on interest rates persist, they are likely to continue holding at elevated levels. As a result, next week’s rate decision and statement will be of significance for the yield trade. A fairly good UK session for materials and energy might feed through to the local market today. On a stock level we expect to see a strong start for BHP with its ADR pointing to a 0.8% gain to $37.46. Iron ore prices have remained steady at 148.40 and this will help support the iron ore space. The insurers will remain in focus on the back of floods in Queensland and parts of New South Wales. Keep an eye on the likes of IAG, QBE and SUN. Miners with operations in affected areas might also struggle. Wesfarmers reports Q2 results today and we feel Coles’ performance will be one of the key issues to watch. Analysts are expecting 4.5% to 5.5% sales growth and for Coles to outperform Woolworths (which reports tomorrow) by 4%.

MarketPrice at 8:00am AESTChange Since Australian Market ClosePercentage Change
AUD/USD1.04660.0025 0.24%
ASX (cash)48912 0.03%
US DOW (cash)1396463 0.46%
US S&P (cash)1508.66.8 0.45%
UK FTSE (cash)634436 0.56%
German DAX (cash)785714 0.18%
Japan 225 (cash)1090240 0.37%
Rio Tinto Plc (London)35.760.70 2.00%
BHP Billiton Plc (London)21.510.39 1.86%
BHP Billiton Ltd. ADR (US) (AUD)37.460.29 0.77%
US Light Crude Oil (March)97.520.81 0.84%
Gold (spot)1663.704.5 0.27%
Aluminium (London)206314 0.67%
Copper (London)811247 0.58%
Nickel (London)17838211 1.20%
Zinc (London)240613 0.52%
Iron Ore148.40.0 0.00%

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.

STAN SHAMU
Market Strategist

www.igmarkets.com

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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