IG Markets - Morning thoughts and opening prices
Overnight, US markets again finished essentially flat as investors digested a marginally better-than-expected jobless claims report and waited in anticipation for upcoming central bank action.
Having enjoyed a strong rally over the past fortnight, numerous analysts and economists are now suggesting global equities could tread water over the next month or so until we get concrete evidence of central bank action from both the ECB and the Fed. Fresh policy initiatives from both central banks are the proverbial ‘elephant in the room’, with the performance of all asset classes seemingly hinging on a definitive policy response. In relation to the ECB, the market is awaiting the details surrounding the likely re-implementation of its bond purchase programme, while for the Fed it’s a case of more QE or something at the discount lending window.
The flat close on Wall Street is likely to see a relatively subdued day of trading here in Australia today. Heading into the session, the local market is up 2.1% for the week having moved beyond 4300 for the first time since mid-May. We are currently calling the market to open 11 points or 0.25% higher at 4319, with the day’s trading likely to be influenced by the odd earning reports (Crown and Good man Group among the notables) and Chinese trade balance data.
With the cyclical resources and energy names seeming to have regained some of their lost mojo this week, the Chinese data is sure to prove pivotal. While evidence of late has suggested China’s growth trajectory has slowed, investors are expecting stimulus measures to be implemented over the second-half of the year and will be closely watching to see China’s import appetite for our commodities. Similarly, the export growth rate will also be of interest to assess the impact that Europe’s slowdown is having on the Chinese economy.
|Market||Price at 6:30am AEST||Change Since Australian Market Close||Percentage Change|
|US DOW (cash)||13174||-31||-0.23%|
|US S&P (cash)||1403.9||-2.1||-0.15%|
|UK FTSE (cash)||5848||-8||-0.14%|
|German DAX (cash)||6954||-23||-0.33%|
|Japan 225 (cash)||8954||-25||-0.28%|
|Rio Tinto Plc (London)||32.17||-0.63||-1.93%|
|BHP Billiton Plc (London)||19.86||0.10||0.49%|
|BHP Billiton Ltd. ADR (US) (AUD)||32.85||0.05||0.15%|
|US Light Crude Oil (September)||93.64||0.07||0.07%|
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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