IG Markets Morning Prices
IG Markets Morning Prices
On Wall Street overnight, the major indices closed mixed after trading in a relatively tight range for most of the session as global uncertainties from Europe and China continued to weigh on sentiment.
The Dow Jones Industrial Average was the worst performer, down 0.1% while the NASDAQ and S&P 500 finished 0.2% firmer at flat respectively.
Domestically, the ASX 200 is called to open 0.2% weaker at 4616 following the mixed overnight leads.
The financial sector was the weakest performer in US trade so we may see some selling among Australian names. JPMorgan, Bank of America and Wells Fargo were all down more than 1.1% following news some of the banks were working with regulators and attorneys general to resolve inquiries into foreclosure practices for the industry.
On the upside, the consumer discretionary and energy sectors were the best performers, adding 0.9% and 0.4% respectively. Energy names managed to buck the lead from Crude Oil, with the black gold declining another 2.2% to US$81 per barrel, the lowest level in four weeks.
The materials sector finished the US session unchanged, although leads from London and the ADR point toward possible modest gains. On the London Metals Exchange, most of the base metals rebounded with nickel, copper and aluminium all rising more than 0.7%. In normal London equities trade, both Rio Tinto and BHP Billiton added 0.7% and 0.8% respectively, rebounding from the wave of selling yesterday. BHP Billiton’s ADR is pointing towards a 0.1% gain on the open.
In summary, it looks like we’re in for a fairly benign session as there is nothing in the way of economic news locally.
In the currency market, the USD lost some ground against the basket of currencies overnight following the weaker-than-expected data seen. With the market continuing to assess both the need and the probability of the full $600b stimulus from the Fed, perhaps the inflation print and housing starts went some way to supporting the Fed’s case. Inflation grew an anaemic 0.2% while housing starts fell 11.7% to the lowest level in 18 months.
The Euro traded in a range of 1.3460 to 1.3566 before finishing the daily session higher by around 30 points from yesterday’s daily close, with traders continuing to focus on the confusion in the Eurozone; the feeling at the moment is that it’s more a matter of when, and not if we’ll see an Irish bailout A resolution to Ireland’s problems would likely see a short-term move higher. The Australian dollar traded in a range of 97.26 to 98.34 and is marginally higher from the yesterday’s equity market close.
Looking around the region there is no major data releases to focus on so risk currencies will most probably struggle to find any real direction. Currencies such as the Euro, AUD, NZD, CAD and sterling will be at the mercy of any narrative that comes out of Europe; if we hear anything more concrete on a resolution in Ireland we could see some upside in risk.
Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9787 0.0018 0.18%
ASX (cash) 4616 -9 -0.19%
US DOW (cash) 11019 -24 -0.22%
US S&P (cash) 1179.4 -2 -0.15%
UK FTSE (cash) 5687 10 0.18%
German DAX (cash) 6700 17 0.25%
Japan 225 (cash) 9833 45 0.46%
Rio Tinto Plc (London) 41.48 0.27 0.67%
BHP Billiton Plc (London) 23.36 0.18 0.75%
BHP Billiton Ltd. ADR (US) (AUD) 43.51 0.04 0.10%
US Light Crude Oil (Jan) 81.02 -1.84 -2.21%
Gold (spot) 1335.1 -3.0 -0.23%
Aluminium (London) 2278 23 1.02%
Copper (London) 8205 55 0.67%
Nickel (London) 21560 320 1.51%
Zinc (London) 2117 -11 -0.52%
RBA Cash Rate to be raised by 25bp (Dec) (%) 3.00 -2 -2.00%
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