IG Markets Morning Prices

IG Markets Morning Prices

On Wall Street overnight, US stocks fell, sending the Dow Jones Industrial Average to its biggest fall in a month as analysts cut ratings ahead of Thursday start to the Q3 reporting season. This spurred general caution ahead of a heavy week of data and earnings.

For the session, the technology heavy NASDAQ was the worst performer, losing 1.1% while the S&P 500 and Dow Jones Industrial Average gave up 0.8% and 0.7% respectively.

Domestically, the ASX 200 is called to open the session 0.6% weaker at 4600 even following the retreat on Wall Street and ahead of this afternoon’s interest rate decision.

In terms of sectors, the heavily weighted material, energy and industrial sectors were the worst performers in US trade, declining 1.6%, 1.3% and 1.1% respectively.

The basic materials sector was the standout on the downside as investors reduced their exposure to risk. All base metal leads were lower on the London Metals Exchange while Rio Tinto and BHP Billiton both lost 1.5% in normal London trade. BHP Billiton’s ADR is called to open 1.4% lower at $39.45. Gold futures also retreated, giving up 0.2% to US$1315.3.

Elsewhere, the financials space is likely to weigh after the US sector fell 0.7%. Also, the 73% chance of an interest rate hike this afternoon could also drag on the financials performance.

In summary, it looks like a weak start to today’s session ahead of this morning’s reading on retail sales and the trade balance and ahead of this afternoon’s RBA interest rate meeting. Many participants will be watching the retail sales number for a clearer picture as to how the local consumer is faring. However, we note that an interest rate hike this afternoon and further hawkish rhetoric from the RBA will likely hurt the retailers.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9680 -0.0014 -0.14%
ASX (cash) 4600 -26 -0.55%
US DOW (cash) 10774 -50 -0.46%
US S&P (cash) 1139.7 -6 -0.50%
UK FTSE (cash) 5561 -50 -0.89%
German DAX (cash) 6141 -81 -1.29%
Japan 225 (cash) 9313 -112 -1.19%
Rio Tinto Plc (London) 36.97 -0.56 -1.51%
BHP Billiton Plc (London) 20.27 -0.31 -1.53%
BHP Billiton Ltd. ADR (US) (AUD) 39.45 -0.55 -1.38%
US Light Crude Oil (Nov) 81.52 0.04 0.05%
Gold (spot) 1315.3 -3.0 -0.22%
Aluminium (London) 2346 -17 -0.72%
Copper (London) 8057 -85 -1.04%
Nickel (London) 23970 -114 -0.47%
Zinc (London) 2219 -20 -0.89%
RBA Cash Rate to be raised by 25bp (Oct) (%) 73.00 3 3.40%

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