Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

IG Markets opening calls

IG Markets opening calls

Today’s lead for the Australian equity market is positive despite a night of mixed night of economic data in the US. On Friday the S&P 500 closed up 0.3% at 1224.71, just off the recent intraday high of 1127, however the tech heavy NASDAQ closed at its highest level in nearly three years up 0.5%. As a result of the overseas lead we are expecting the Australian market to unwind just above 4700.

In the last couple of week’s expectations of a strong jobs number on Friday had been heightened as the 4 week average of the weekly jobless claims headed lower, however it was disappointing to see November payroll grow 39,000, lower than the 150,000 consensus by economists, private payrolls were equally unspectacular climbing lower than the forecast amount. The unemployment rate also ticked up to 9.8% from 9.6%. Traders also eyed the November non- manufacturing ISM which printed a better than expected 55.0 vs 54.8.

It was impressive that the equity market held up well despite the unemployment numbers and goes some way to show that we could be seeing a slight change of mind set. In recent times traders have been looking at events with a ‘glass half empty ‘ mentality, however it looks like money managers want to push equities higher in the short term, the fact the S&P 500 managed to close higher despite the disappointment these numbers created is positive.

It was interesting though to see the USD coming under severe selling. The Euro pushed up to a high of 1.3438, the AUD pushed back above 99c and the Yen strengthened to 82.53. In recent weeks the USD had been rallying on the back of safe haven flows but also on the growth prospects of the US economy, data of late has shown some turnaround and the weakness we saw in currencies reflects a slight unwinding of expectations. There is also a theory that perhaps with further evidence of anaemic job creation the Federal Reserve could go above and beyond their stated $600b asset purchase program.

Looking at the drivers for today’s trade and AIG construction index and TD inflation numbers will get some mention but aren’t expected to materially affect trade. Materials will probably be a standout given commodities are up from Friday equity close, as a result BHP and Newcrest’s ADR suggest gains on open. All eyes on this space will be on Riversdale mining (RIV) with London based Daily Telegraph suggesting Rio-Tinto are set to put a bid in at A$15.

The usual drivers will remain in play and an underlying positive bias should be seen, so keep an eye on the risk currencies such as the AUD and Euro, the Nikkei and the Chinese A50 index which could influence intraday trade as well.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9905 0.0148 1.52%
ASX (cash) 4708 14 0.30%
US DOW (cash) 11369 14 0.12%
US S&P (cash) 1224.3 4 0.31%
UK FTSE (cash) 5760 -10 -0.18%
German DAX (cash) 6971 12 0.17%
Japan 225 (cash) 10160 -13 -0.13%
Rio Tinto Plc (London) 44.16 0.01 0.02%
BHP Billiton Plc (London) 24.24 -0.27 -1.08%
BHP Billiton Ltd. ADR (US) (AUD) 44.64 0.05 0.11%
US Light Crude Oil (Jan) 89.44 1.71 1.95%
Gold (spot) 1414.0 24.0 1.73%
Aluminium (London) 2326 -18 -0.77%
Copper (London) 8739 46 0.53%
Nickel (London) 23640 -50 -0.21%
Zinc (London) 2225 -5 -0.22%
RBA Cash Rate to be raised by 25bp (Dec) (%) 1.00 0.00 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.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:



Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: