IG Markets - Morning Prices September 29, 2010

IG Markets - Morning Prices

In the US overnight, stocks finished near session highs as stronger-than-expected numbers from Walgreen, the largest US drug store led a rally among consumer staples and healthcare names. A weaker-than-anticipated consumer confidence reading helped fuel speculation the Federal Reserve would engage in another round of quantitative easing, which is positive for equities.

The S&P 500 index was the top performer overnight, adding 0.5% while the NASDAQ and Dow Jones Industrial Average both rose 0.4%.

Locally, the ASX 200 is called to open 0.4% higher at 4691 following the positive session on Wall St. With all US sectors finishing in positive territory, we’re likely to see fairly broad based gains locally.

Consumer staples and energy names could see some buying support after the US sectors were the top performers, rising 1% and 0.8%. WalGreen shares added 11% to lead consumer staples higher while a 0.3% rise in Crude Oil futures supported energy names.

Elsewhere, financial and industrial names are likely to be supported after the US sectors rose 0.3% and 0.6% respectively.

A gain of 0.6% for the US basic materials sector will likely help the local resources sector. Leads from the London Metals Exchange were supportive too with all base metals finishing higher between 1% and 1.5%. In normal London trade, Rio Tinto and BHP Billiton added 1.3% and 1% respectively, with BHP Billiton’s ADR calling the locally listed stock up 0.9%. Gold names should do well again after gold futures rose to a fresh all-time high of US$1310 per ounce.

In summary, it looks like a broadly firmer open in response to the positive lead from Wall St. Japan’s Tankan Manufacturing index is due for release at 9.50am and will be keenly watched ahead of the open. At 12.30, the HSBC Manufacturing PMI number from China will be in focus, with a stronger-than-expected reading likely to see mining stocks bid higher.

Market Price at 7:00am AEST ...
...Change Since Australian Market Close Percentage Change

AUD/USD 0.9676 0.0087 0.91%
ASX (cash) 4691 21 0.44%
US DOW (cash) 10856 39 0.36%
US S&P (cash) 1147.1 5 0.40%
UK FTSE (cash) 5591 20 0.35%
German DAX (cash) 6284 7 0.11%
Japan 225 (cash) 9479 -16 -0.17%
Rio Tinto Plc (London) 37.51 0.48 1.28%
BHP Billiton Plc (London) 20.30 0.20 1.00%
BHP Billiton Ltd. ADR (US) (AUD) 39.77 0.34 0.87%
US Light Crude Oil (Nov) 76.24 0.20 0.27%
Gold (spot) 1309.4 16.7 1.29%
Aluminium (London) 2313 32 1.40%
Copper (London) 7981 101 1.28%
Nickel (London) 23195 220 0.96%
Zinc (London) 2220 33 1.51%
RBA Cash Rate to be raised by 25bp (Oct) (%) 63.00 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.

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