IG Markets – Morning Prices

IG Markets – IG Markets 24 September 2010

IG Markets – Morning Prices

24 September 2010

On Wall St overnight, stocks slid the most in two weeks, gathering pace in the last hour of trade on concerns the global recovery is losing steam. A surprise jump in jobless claims and disappointing European economic data rattled investor sentiment.

The broad based S&P 500 fell 0.8% while the Dow Jones Industrial Average lost 0.7%. The technology laden NASDAQ was weaker by 0.3%.

Domestically, the ASX 200 is called to open 1% lower at 4587 following the selloff in New York. All US sectors finished in the red so we’re likely to see broad based weakness today.

Financials and industrials are likely to be the biggest drags after they fell 1.9% and 1.5% in overnight trade. Large US financials like Goldman Sachs and Morgan Stanley fell 2.1% and 0.8% respectively after Bank of America Merrill Lynch and Rochdale Securities cut their earnings. Bank of America also lowered Citigroup’s 2010 earnings-per-share forecast.

We should also see some selling pressure among material names after the US basic materials sector fell 0.9%. The market will probably ignore the mainly positive base metals leads from the London Metals Exchange, as well as a flat finish for both Rio Tinto and BHP Billiton in London trade. BHP Billiton’s ADR is calling the locally-listed stock 0.6% lower at the open.

Elsewhere, energy and consumer discretionary names are likely to be weaker too after both sectors were down more than 0.5% on Wall St.

In summary, it looks like we’re in for some broad based falls today as investors continue to take some money off of the table following the strong global rally seen. Volumes should be closer to normal today as only the Shanghai Composite remains on holiday.

Market Price at 7:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9497 -0.0071 -0.74%
ASX (cash) 4587 -46 -1.00%
US DOW (cash) 10670 -103 -0.96%
US S&P (cash) 1124.6 -14 -1.23%
UK FTSE (cash) 5509 -65 -1.16%
German DAX (cash) 6158 -95 -1.51%
Japan 225 (cash) 9417 -96 -1.01%
Rio Tinto Plc (London) 36.53 0.01 0.01%
BHP Billiton Plc (London) 20.00 0.00 0.00%
BHP Billiton Ltd. ADR (US) (AUD) 38.99 -0.23 -0.59%
US Light Crude Oil (Nov) 74.78 -0.04 -0.05%
Gold (spot) 1292.8 0.5 0.04%
Aluminium (London) 2285 41 1.83%
Copper (London) 7887 15 0.19%
Nickel (London) 22730 5 0.02%
Zinc (London) 2240 30 1.36%
RBA Cash Rate to be raised by 25bp (Oct) (%) 59.00 0 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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