IG Markets – Morning Prices

IG Markets – Morning Prices 21 September 2010

IG Markets – Morning Prices

21 September 2010

In the US overnight, stocks started the week on the front foot with the S&P 500 jumping to a four-month high as IBM announced a takeover bid worth $1.7 billion. The gains came despite a jump in the yields investors demand to hold Portuguese and Irish government debt.

The NASDAQ was the top performer, up 1.7% while the S&P 500 added 1.5% to close at 1143, above the much talked about 1131 resistance level. The Dow Jones Industrial Average rose 1.4%.

Locally, the ASX 200 is called to open 0.8% firmer at 4669 after the very strong overnight leads. All sectors in the US finished firmly in the black so we’re likely to see broad based gains.

Consumer discretionary and financial names were the strongest sectors, both rising 1.9%. American Express led the blue-chip financials higher after Bank of America said it had established a position in the credit card giant after it upgraded the consumer finance sector to overweight from equal weight.

Among discretionary names, Office Depot surged more than 10% after a broker said the company is in a good position to benefit from the economic recovery.

Elsewhere, energy and material names are likely to add significant support after both sectors rose 1.7% and 0.6% respectively. Crude oil futures added 1.5% while on the London Metals Exchange, base metals were mostly lower. However, in normal UK trade, Rio and BHP rose 1.3% and 2.1%. BHP’s ADR is calling the locally listed stock 0.6% higher at $39.02.

In summary, it looks like being broad based gains for the ASX 200 today. The latest Monetary Policy Meeting Minutes from the RBA are due for release at 11.30am, although their unlikely to contain any surprises given Governor Stevens spoke yesterday. Apart from that, Trader’s will be keeping a keen eye on how Asian markets trade in response to the bullish Wall St session.

Market Price at 7:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9472 0.0023 0.25%
ASX (cash) 4669 38 0.81%
US DOW (cash) 10734 109 1.03%
US S&P (cash) 1140.8 14 1.25%
UK FTSE (cash) 5618 94 1.70%
German DAX (cash) 6309 78 1.25%
Japan 225 (cash) 9722 122 1.27%
Rio Tinto Plc (London) 36.04 0.46 1.31%
BHP Billiton Plc (London) 19.80 0.40 2.06%
BHP Billiton Ltd. ADR (US) (AUD) 39.02 0.24 0.63%
US Light Crude Oil (Nov) 76.23 1.12 1.48%
Gold (spot) 1278.5 -3.0 -0.24%
Aluminium (London) 2202 5 0.23%
Copper (London) 7715 -86 -1.10%
Nickel (London) 23085 -366 -1.56%
Zinc (London) 2176 -21 -0.96%
RBA Cash Rate to be raised by 25bp (Oct) (%) 30.00 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.

ENDS

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