IG Markets Morning Prices
IG Markets Morning Prices
In the US overnight, stocks ended the session sharply weaker as the US dollar rallied amid worries over contagion within the Eurozone and the effects of the military action between North and South Korea on already fragile investor sentiment.
The NASDAQ was the worst performer, down 1.5% while the S&P 500 fell 1.4% and Dow Jones Industrial Average gave up 1.3%.
Locally, the ASX 200 is called to open 1.1% lower around the 4538 level following the bearish overnight developments. Losses are likely to be broad-based as all US sector slumped more than 1%.
The riskier materials and energy sectors were the ones hit hardest, falling 1.9% and 2% respectively as investors continued to aggressively wind back their exposure to risk. On the London Metals Exchange, base metals were mostly lower while in normal equities trade, Rio Tinto and BHP Billiton fell 2.8% and 2.2% respectively. After US trade, BHP Billiton’s ADR is calling the locally listed stock to open 0.7% weaker at $42.83.
Elsewhere, the financials (-1.6%), consumer discretionary (-1.5%) and industrials (-1.4%) sectors are all likely to come under significant selling pressure as investors continue to head for the sidelines.
In summary, it’s likely to be a pretty ugly session for the local and Asian markets. There are a serious number of headwinds weighing on sentiment at the moment including the European sovereign debt crisis, concerns over further tightening measures in China, hostilities between North & South Korea and this SEC and FBI probe into hedge funds in the US.
In currency markets, both the AUD and euro got smashed as investors pared back their risk appetites and sold anything related to risk. The euro slumped to a low of 1.3361, where it remains while the AUD is sitting around the 0.9727 level, off earlier lows of 0.9708. We’re starting to see a number of bearish trends developing on these two majors, with the AUD in the progress of printing a bearish head and shoulders reversal pattern.
Market Price at 8:00am AEST Change
Since Australian Market Close Percentage
AUD/USD 0.9724 -0.0126 -1.28%
ASX (cash) 4538 -52 -1.12%
US DOW (cash) 11036 -118 -1.06%
US S&P (cash) 1180.7 -14 -1.19%
UK FTSE (cash) 5602 -74 -1.30%
German DAX (cash) 6727 -99 -1.45%
Japan 225 (cash) 9853 -216 -2.15%
Rio Tinto Plc (London) 40.70 -1.15 -2.75%
BHP Billiton Plc (London) 22.68 -0.52 -2.22%
BHP Billiton Ltd. ADR (US) (AUD) 42.83 -0.31 -0.71%
US Light Crude Oil (Jan) 81.41 0.27 0.34%
Gold (spot) 1376.0 16.9 1.24%
Aluminium (London) 2252 -17 -0.75%
Copper (London) 8154 -37 -0.45%
Nickel (London) 21604 4 0.02%
Zinc (London) 2095 -12 -0.57%
RBA Cash Rate to be raised by 25bp (Dec) (%) 3.75 -1.20 -1.20%
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