Scoop  Business

IG Markets - Morning Prices Wed, 21 July 2010

IG Markets - Morning Prices

Wed, 21 July 2010

On Wall St, early gains after strong results from Apple and Morgan Stanley were quickly erased once Fed Chairman Ben Bernanke began his speech. The market slid sharply as Ben Bernanke said the economic outlook remains unusually uncertain and that the Fed remains prepared to act as needed to aid growth even as it gets ready to eventually lift interest rates from almost zero and shrink a record balance sheet.

The tech heavy NASDAQ was the biggest decliner, falling 1.6% while the S&P 500 and Dow Jones Industrial Average gave up 1.3% and 1.1% respectively.

Locally, the ASX 200 is called to open 09% lower at 4375 following the afternoon plunge on Wall St.

With all US sectors finishing firmly lower, we’re likely to see broad based falls at the open today. The consumer discretionary sector topped the list of decliners, falling 1.8% so we’re likely to see significant pressure on local consumer names.

Elsewhere, financials, energy and healthcare were all down 1.6% and are likely to weigh on their respective local sectors. Energy names could see additional pressure after Crude Oil futures fell more than 1.5% since our 4.30pm close yesterday.

The industrial and material sectors could be relative outperformers after only losing 0.2% and 0.3% in US trade. One the London Metals Exchange, all base metals were firmer, up between 0.9% and 2.6%. In normal LSX trade, Rio Tinto and BHP Billiton had a good session, rallying 2.4% and 2.5% respectively. BHP Billiton’s ADR is calling the locally listed stock to open 0.4% higher at $38.88, however that may be a little optimistic given the overall market lead.

In summary, we’re likely to see a tough day’s trade, with the market opening firmly lower. With nothing in the way of local economic news, the intraday direction will be determined by Asian trade and overall sentiment. There’s a good chance we’ll see another quiet intraday trading session.

Market Price at 7:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.8783 -0.0037 -0.42%
ASX (cash) 4375 -38 -0.87%
US DOW (cash) 10097 -113 -1.11%
US S&P (cash) 1066.3 -15 -1.38%
UK FTSE (cash) 5171 -14 -0.28%
German DAX (cash) 5953 -54 -0.90%
Japan 225 (cash) 9199 -74 -0.80%
Rio Tinto Plc (London) 32.48 0.75 2.35%
BHP Billiton Plc (London) 19.19 0.47 2.48%
BHP Billiton Ltd. ADR (US) (AUD) 38.88 0.13 0.35%
US Light Crude Oil (Sep) 76.41 -1.18 -1.51%
Gold (spot) 1185.1 -4.6 -0.39%
Aluminium (London) 2003 18 0.91%
Copper (London) 6846 176 2.64%
Nickel (London) 19477 331 1.73%
Zinc (London) 1900 37 1.99%
RBA Cash Rate to be raised by 25bp (Aug) (%) 25.00 -2.50 -9.09%

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


Discover more about CFD trading with IG Markets, the world’s No.1 CFD provider*.

© Scoop Media

 

Business Headlines | Sci-Tech Headlines