IG Markets – Morning Prices 18 August 2010

IG Markets – Morning Prices 18 August 2010

IG Markets – Morning Prices

18 August 2010

On Wall St overnight, largely stronger-than-expected economic data saw the major US indices move higher, with the Dow snapping a 5-day losing streak. Gains were also helped by profits beating estimates, as well as BHP’s $39 billion dollar bid for Potash which sparked a rally in agricultural companies.

Once again, the tech heavy NASDAQ was the top performer, rising 1.3% while the S&P 500 and Dow Jones Industrial Average added 1.2% and 1% respectively.

Despite the solid overnight session, the local ASX 200 is only called to open 0.3% firmer at 4491, with BHP Billiton set to be the major drag.

The materials sector was the standout in US trade, adding 2.4% as base metals on the London Metals Exchange were all up more than 0.9%. Rio Tinto added 3% in London trade but it was a different story for BHP Billiton. Following their $39 billion bid for Canada’s Potash, the stock was sold heavily, closing the session 2.4% weaker. Unsurprisingly, BHP’s ADR is calling the local stock down 3.5%, which will be the biggest weight on our market.

Elsewhere, leads across the sectors were positive with the industrial, energy and consumer discretionary sectors all up more than 1.6%. Financials were the worst performer but still managed gains of 0.8%.

In summary, it’s likely to be a positive day, although the focus will be on BHP and how many points it takes out of the overall index. The fact that the local market outperformed yesterday may also be a hindrance. We’re also due to see reports from the likes of Woodside Petroleum, Westfield Group, CSL and David Jones.

Market Price at 7:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9053 0.0038 0.42%
ASX (cash) 4491 14 0.30%
US DOW (cash) 10388 67 0.65%
US S&P (cash) 1091.1 9 0.81%
UK FTSE (cash) 5332 35 0.67%
German DAX (cash) 6186 54 0.88%
Japan 225 (cash) 9228 65 0.71%
Rio Tinto Plc (London) 34.06 0.99 2.99%
BHP Billiton Plc (London) 19.16 -0.47 -2.37%
BHP Billiton Ltd. ADR (US) (AUD) 38.78 -1.42 -3.54%
US Light Crude Oil (Sep) 75.50 0.15 0.19%
Gold (spot) 1224.9 0.6 0.04%
Aluminium (London) 2148 18 0.85%
Copper (London) 7390 105 1.44%
Nickel (London) 22075 425 1.96%
Zinc (London) 2123 30 1.43%
RBA Cash Rate to be raised by 25bp (Sep) (%) 3.00 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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