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IG Markets – Morning Prices 21 July, 2010

IG Markets – Morning Prices

21 July 2010

On Wall St overnight, US stocks gained after an early slide amid speculation the Federal Reserve will take further steps to stimulate the economy. Treasuries pared gains and higher oil and copper prices helped lift the commodity players.

Once again, the NASDAQ was the top performer, adding 0.9%. Both the S&P 500 and Dow Jones Industrial Average finished the session 0.6% firmer.

Domestically, the ASX 200 is called to open 0.9% firmer at 4444 following the positive session on Wall St where all sectors bar healthcare finished in the green.

We’re likely to see a strong performer from our materials sector today after the US basic materials sector was the standout overnight, rising 3%. Base metals on the London Metals Exchange were mostly stronger too, with zinc, copper and nickel all higher between 0.3% and 1.2%. In normal London Stock Exchange trade, both Rio Tinto and BHP Billiton surged, adding 4.1% and 3.1% respectively. BHP Billiton’s ADR is calling the locally listed stock to open 2.1% firmer at $39.11, with eyes firmly on BHP Billiton’s full year production report due this morning.

We should also see solid support among our energy names after Crude Oil futures advanced 0.8% since our 4.30pm close yesterday. Coal miners are likely to be well bid too after Peabody Energy, the world’s largest private-sector coal company rose 1.8% after reporting a strong Q2 result on the back of strong Asian demand.

Elsewhere, consumer discretionary, industrial and financial names should be well bid after their corresponding sectors had strong sessions in US trade.

In summary, it looks like we’ll see a strong open to our market before attention turns towards Asian trade. The Melbourne Institute Leading Index is due for release at 10.30, but is unlikely to have much of an impact on the market.

Market Price at 7:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.8838 0.0057 0.64%
ASX (cash) 4444 41 0.93%
US DOW (cash) 10239 125 1.24%
US S&P (cash) 1085.3 19 1.74%
UK FTSE (cash) 5204 38 0.74%
German DAX (cash) 6033 1 0.01%
Japan 225 (cash) 9387 89 0.96%
Rio Tinto Plc (London) 31.73 1.25 4.08%
BHP Billiton Plc (London) 18.72 0.56 3.06%
BHP Billiton Ltd. ADR (US) (AUD) 39.11 0.81 2.11%
US Light Crude Oil (Sep) 77.86 0.64 0.82%
Gold (spot) 1192.1 8.3 0.70%
Aluminium (London) 1976 -12 -0.60%
Copper (London) 6675 81 1.23%
Nickel (London) 19090 53 0.28%
Zinc (London) 1859 9 0.49%
RBA Cash Rate to be raised by 25bp (Aug) (%) 28.00 5.50 5.50%

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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