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IG Markets - Morning thoughts and opening prices

IG Markets - Morning thoughts and opening prices

In the US session, markets edged higher in cautious trade as investors waited on Greece news ahead of a long weekend. US markets are closed on Monday for the Presidents’ Day holiday. European markets were mostly higher, as investors anticipated a positive Greek outcome.

Among the major averages, the Dow Jones Industrial Average was up 0.4% to close at 12950. The S&P was 0.2% higher at 1361, but the NASDAQ lost 0.3% to finish at 2952.

What looked like being a quiet weekend ahead of today’s European meeting turned into an interesting one with China's RRR. On Saturday, the PBOC cut the RRR by 50 basis points, taking effect 24 February. This came after dismal housing data early on Saturday, and will almost certainly improve risk sentiment today. There has also been some progress on the Greece front after cabinet approved further budget cuts of €325 million essential to the second bailout being approved, including pension cuts and reductions to healthcare spending. This has improved optimism ahead of Monday’s eurogroup finance ministers’ meeting.

Ahead of the open, we are calling the Aussie market down 0.1% at 4191. However, this is based on Saturday morning’s close for the futures, and therefore does not take into consideration the developments from the weekend on the Greece and China front. We have seen risk currencies open significantly higher this morning, indicating that risk appetite has vastly improved. As a result, we are likely to see some strength in the cyclical sectors and a positive bias to our opening call. Another factor to consider today is that several companies go ex-dividend and this might put a dent in the market early on.

Reporting today, we have Bendigo and Adelaide Bank, Amcor, Bluescope and Challenger as the major ones to keep an eye on. There is nothing to look out for on the local economic calendar.

MarketPrice at 8:30am AESTChange Since Australian Market ClosePercentage Change
ASX (cash)4191-5-0.12%
US DOW (cash)129532111.66%
US S&P (cash)1363.0151.11%
UK FTSE (cash)5921711.21%
German DAX (cash)68822223.33%
Japan 225 (cash)94901061.13%
Rio Tinto Plc (London)36.22-0.11-0.30%
BHP Billiton Plc (London)20.23-0.31-1.51%
BHP Billiton Ltd. ADR (US) (AUD)35.550.350.99%
US Light Crude Oil (Mar)105.223.703.64%
Gold (spot)1723.01.00.06%
Aluminium (London)2164.0040.19%
Copper (London)8175.00-125-1.51%
Nickel (London)19625.00-275-1.38%
Zinc (London)1945.00-33-1.67%
RBA Cash Rate to be decreased by 25bp (Mar) (%)32.0000.00%

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.


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