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

 

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