IG Markets Morning Prices

IG Markets Morning Prices

Good morning,

In overnight action, the euro couldn’t extend its three day winning streak versus the dollar as stocks and commodities slid following the Irish bailout news. The rescue package failed to ease concerns over troubled European nations, with many participants pondering who may be next. Nonetheless, all three of the major indices recovered strongly from significant falls early.

For the session, the technology laden NASDAQ was the best performer, rising 0.6%. The Dow Jones Industrial Average and S&P 500 both fell 0.2% for the session.

For the local session, the ASX 200 is called to open 0.4% lower following the mixed to weaker overnight leads.

We could see the financials coming under pressure today after the US sector was the worst performer, falling 1.4%. The banking stocks were among the hardest hit after the FBI raided two hedge funds in connection to widening probe into insider trading, according to Wall Street Journal reports. Federal prosecutors are expected to announce a new serious of insider trading cases shortly against hedge funds, Wall Street bankers and consultants.

Goldman Sachs was the heaviest loser, slumping 3.4% after it was named in the report while the likes of Wells Fargo, Citigroup, JPMorgan and Bank of America were all down more than 2%.

Industrial and energy names may also see some selling after the respective sectors fell 0.2% and 0.3% in US trade. A fall of 1.1% in Crude Oil futures to US$81.71 per barrel weighed on energy names.

Despite a rise of 0.3% for the US basic materials sector, it looks like the local resource names could see some weakness after base metals on the London Metals Exchange were mostly lower In normal London trade, Rio Tinto and BHP Billiton gave up 1.1% and 0.6% respectively too while BHP Billiton’s ADR is calling the local stock 0.3% softer at $43.76.

In summary, it looks like we’ll see a modest move lower from the open, with trade likely to be on the light side as there’s nothing in the way of local economics and Japan’s out for a public holiday.

In foreign exchange trade, the euro came under heavy selling pressure as the bailout package failed to ease concerns of contagion among other PIIGS nations. The euro fell to a low of 1.3577 before bouncing slightly to around the 1.3615, where it’s currently trading. The AUD fared much better, hitting a low of 0.9823 before rebounding to be trading around the 0.9887 level.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9889 -0.0041 -0.41%
ASX (cash) 4627 -17 -0.37%
US DOW (cash) 11184 -63 -0.56%
US S&P (cash) 1198.3 -8 -0.62%
UK FTSE (cash) 5696 -85 -1.47%
German DAX (cash) 6845 -40 -0.58%
Japan 225 (cash) 10088 -40 -0.39%
Rio Tinto Plc (London) 41.85 -0.45 -1.06%
BHP Billiton Plc (London) 23.20 -0.13 -0.56%
BHP Billiton Ltd. ADR (US) (AUD) 43.76 -0.12 -0.27%
US Light Crude Oil (Jan) 81.71 -0.88 -1.07%
Gold (spot) 1367.5 5.8 0.42%
Aluminium (London) 2288 28 1.24%
Copper (London) 8290 -114 -1.36%
Nickel (London) 21600 -250 -1.14%
Zinc (London) 2138 -22 -1.02%
RBA Cash Rate to be raised by 25bp (Dec) (%) 4.95 1.20 1.20%

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.

Please contact IG Markets if you require market commentary or the latest dealing price.

ENDS

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