IG Markets - Morning Prices July 8, 2010

IG Markets - Morning Prices

US stocks surged overnight, with US benchmarks up the most since May as bullish comments from the International Council for Shopping Centers lifted confidence across the board. A solid result from State Street Corp. helped boost sentiment among the financials.

The NASDAQ and broad based S&P 500 were the best performers, both rising 3.1% while the concentrated Dow Jones Industrial Average added 2.8%.

The market was in a very oversold position so all you needed was a catalyst to start the rally. The market was probably factoring in too much of a bearish outcome for the upcoming earnings season – as soon as State Street released a good result and the positive comments on retail sales filtered through, sentiment jumped across the board. Looking ahead, whilst earnings are going to be important, the market will be as equally focused on company outlook statements for signs of recovery.

Domestically, the ASX 200 is called to open 2.2% firmer at 4350 after the strong overnight leads. All sectors finished deep in positive territory so we’re likely to see broad based gains today, with the heavily weighted material, financial and energy sectors outperforming.

Financials were the best performer, up 4.4% after State Street Corp. reported a solid profit, boosting confidence across the sector. Materials had a strong session too, rallying 4%.

Base metals were all stronger on the London Metals Exchange while in normal trade, Rio Tinto retreated 0.4% and BHP added 0.7%. Nonetheless, BHP’s ADR is calling the locally listed stock to open 2.1% higher at $38.20.

Energy names should have a good session after crude oil futures jumped more than 4% since our 4.30pm close yesterday.

In summary, it looks like a very positive open for our market before focus turns to the latest set of employment numbers due for release at 11.30am.

Market / Price at 7:00am AEST / ...
...Change Since Australian Market Close / Percentage Change /

AUD/USD / 0.8639 0.0158 1.86%
ASX (cash) / 4350 95 2.23%
US DOW (cash) / 10027 321 3.31%
US S&P (cash) / 1062.3 38 3.72%
UK FTSE (cash) / 5073 161 3.27%
German DAX (cash) / 6066 169 2.87%
Japan 225 (cash) / 9535 255 2.75%
Rio Tinto Plc (London) / 30.36 -0.14 -0.44%
BHP Billiton Plc (London) / 17.89 0.12 0.68%
BHP Billiton Ltd. ADR (US) (AUD) / 38.20 0.77 2.06%
US Light Crude Oil (Aug) / 74.92 2.91 4.04%
Gold (spot) / 1202.5 13.1 1.10%
Aluminium (London) / 2000 22 1.11%
Copper (London) / 6688 143 2.18%
Nickel (London) / 19225 225 1.18%
Zinc (London) / 1860 31 1.69%

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.

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