IG Markets – Morning Prices 08 October 2010

IG Markets – Morning Prices

On Wall Street overnight, US stocks ended the session mostly lower after a volatile session ahead of the beginning of the Q3 earnings season and ahead of tonight’s key employment data. Tonight’s nonfarm-payrolls data may determine whether or not the Federal Reserve Board engages in more quantitative easing.

The technology heavy NASDAQ was the top performer, up 0.1% while both the Dow Jones Industrial Average and S&P 500 fell 0.2%.

Locally, the ASX 200 is called to open 04% or 17 points lower at 4674 following the modestly weaker US leads.

The materials sector looks likely to be the major drag this Friday after stabilization in the US dollar saw commodities and base metals come under heavy pressure. The US basic materials sector was the worst performer, down 1% while base metals on the London Metals Exchange were smashed, down between 1.7% and 3.9%, with nickel the biggest decliner. In normal London trade, Rio Tinto and BHP Billiton fell 1.6% and 0.7% respectively, with BHP Billiton’s ADR calling the locally listed entity 0.8% softer on the open.

We’re also likely to see some money flow from gold names after gold futures retreated 1.4% to US$1333.60 per ounce.

Elsewhere, we could see some pressure among energy, financial and industrial names after the respective sectors in the US were all down between 0.2% and 0.5%. A 2.6% fall in Crude Oil futures weighed on energy stocks.

In summary, it looks like the Australian market will see a similar sort of session to the US, with investors looking to reduce their exposure to risk and take some profits off the table ahead of tonight’s nonfarm payrolls report. Also, Deputy RBA Governor Battellino is delivering a speech at 1.30pm discussing the state of the Australian economy; it’s likely to be closely watched given the recent attention on further interest rate hikes.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9823 -0.0009 -0.09%
ASX (cash) 4673 -18 -0.38%
US DOW (cash) 10964 9 0.08%
US S&P (cash) 1159.9 1 0.12%
UK FTSE (cash) 5663 -17 -0.30%
German DAX (cash) 6280 25 0.39%
Japan 225 (cash) 9641 -34 -0.35%
Rio Tinto Plc (London) 38.65 -0.61 -1.55%
BHP Billiton Plc (London) 21.23 -0.15 -0.70%
BHP Billiton Ltd. ADR (US) (AUD) 40.61 -0.34 -0.83%
US Light Crude Oil (Nov) 81.40 -2.20 -2.63%
Gold (spot) 1333.6 -19.2 -1.42%
Aluminium (London) 2332 -40 -1.69%
Copper (London) 8072 -223 -2.69%
Nickel (London) 23970 -970 -3.89%
Zinc (London) 2250 -88 -3.76%
RBA Cash Rate to be raised by 25bp (Nov) (%) 63.00 4 4.00%

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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