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

 

IG Markets - Morning Thoughts And Opening Prices


IG Markets - Morning Thoughts And Opening Prices

Good morning

Overnight, US markets enjoyed their best session in nearly a fortnight. They were buoyed by comments of support for the ECB’s plans to assist the eurozone from German Chancellor Angela Merkel and courtesy of Cisco lifting its dividend by 75%. For much of the last fortnight, US markets have been range bound, recording the narrowest daily fluctuations since January 2011. This has also been evidenced by the VIX currently trading at five-year lows. Last night, growing expectations that Spain would formerly apply for aid at a meeting of finance ministers and central banks governors next month, allowing the ECB to buy Spanish debt in the secondary market, enhanced the markets belief that the eurozone crisis could be managed.

The growing optimism that an outright eurozone break-up may now becoming a less likely scenario saw risk-averse short positions unwound and US equities approach fresh four-year highs. That optimism is likely to spill over into our local session allowing the ASX 200 to build on its 1.1% gains of yesterday, which were predicated on comments from Chinese Premier Wen Jiabao who said that cooling inflationary pressures allowed room for further easing adjustments to monetary policy in the coming months. With one of the market’s prime concerns being too rapid a slowdown in China, suggestions of more stimulus from the PBoC was just the tonic global equity markets needed to break them out of their recent malaise. Our opening call is for the market to unwind approximately 16 points or 0.4% higher at 4347.

Today’s gains are likely to be relatively broad based, but with a ‘risk on’ bias in the air, materials and energy names are likely to be among the day’s better performers. This notion is also supported by the weaker dollar/higher commodity prices thematic evidenced overnight.

With no material economic data out around the region today, investors will continue to focus on the local earnings season. Among the notables reporting today are APN News and Media, Santos, QBE as well as a trading update from ANZ.

MarketPrice at 6:30am AESTChange Since Australian Market ClosePercentage Change
AUD/USD1.05120.0036 0.35%
ASX (cash)434716 0.38%
US DOW (cash)1324671 0.54%
US S&P (cash)1417.78.4 0.59%
UK FTSE (cash)5847-4 -0.06%
German DAX (cash)700139 0.55%
Japan 225 (cash)914047 0.52%
Rio Tinto Plc (London)30.510.13 0.42%
BHP Billiton Plc (London)19.650.29 1.47%
BHP Billiton Ltd. ADR (US) (AUD)32.920.04 0.12%
US Light Crude Oil (September)95.231.08 1.15%
Gold (spot)1614.612.6 0.79%
Aluminium (London)1852130.69%
Copper (London)7464700.95%
Nickel (London)155451861.21%
Zinc (London)1853191.05%

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.

Cameron Peacock
Market Analyst
IG Markets
www.igmarkets.com.au

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO: