IG Markets – Opening Prices 09 August 2010

IG Markets – Opening Prices 09 August 2010

IG Markets – Opening Prices

The Australian market is looking set to start the week off on the back foot with an open around 4545, down 0.5%.

It was an interesting session on wall street with the S&P 500 picking up nicely from its lows after a weaker than expected nonfarm payrolls reports. Whilst some say the report is a backwards looking indicator the market seemed to put quite a bit of emphasis on it and there was a negative reaction in equities when the numbers were released.

With the headline number printing 131000 jobs lost with only 71000 private sector jobs created vs. 90000 forecast by economists the market quickly looked to sell the US dollar. Two year treasury yields spiked down to another record low and as a result the ‘anti dollar’ trade came in action with the USD/JPY cross trading down to 85 and the Euro benefiting to trade a fresh weekly high of 1.3334. The FOMC statement this week will be closely watched by currency traders to get a grip as how low the dollar may go in the short term.

As for today though material names should outperform given they are benefitting from the dollar weakness, BHP’s adr is pointing to a flat open.

Banks will be important today for how the broader market trades. Their lead in from the S&P financials is negative and we also get a read on home loans for June at 11.30 which are expected to fall 2%. Given we are seeing some weakness in domestic housing at present, banks are starting to see sellers creep in as this may impact margins and revenue further down the track.

Elsewhere look out for ANZ job ad’s and earnings from Bendigo bank and JB HI-FI.

Market Price at 7:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9177 0.0013 0.14%
ASX (cash) 4545 -22 -0.47%
US DOW (cash) 10656 -24 -0.22%
US S&P (cash) 1122.6 -5 -0.45%
UK FTSE (cash) 5377 -10 -0.18%
German DAX (cash) 6314 -42 -0.65%
Japan 225 (cash) 9584 -54 -0.56%
Rio Tinto Plc (London) 34.31 0.01 0.03%
BHP Billiton Plc (London) 20.22 -0.03 -0.15%
BHP Billiton Ltd. ADR (US) (AUD) 41.12 -0.01 -0.03%
US Light Crude Oil (Sep) 80.88 -1.35 -1.64%
Gold (spot) 1205.3 7.9 0.66%
Aluminium (London) 2200 -6 -0.27%
Copper (London) 7380 -43 -0.58%
Nickel (London) 22020 20 0.09%
Zinc (London) 2123 6 0.28%
RBA Cash Rate to be raised by 25bp (Sep) (%) 2.00 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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