IG Markets Morning Prices

Good morning,

In the US overnight, stocks continued their early December push higher, the biggest back-to-back rally in the S&P 500 since September. A number of positive economic reports helped build confidence in the economic recovery while news that the ECB was buying euro zone debt helped ease sovereign concerns. Comments from Goldman Sachs that the S&P 500 will reach 1450, or a 23% gain by the end of next year also helped boost optimism.

The broad-based S&P 500 was the top performer, rising 1.3% while the NASDAQ and Dow Jones Industrial Average added 1.2% and 1% respectively.

Domestically, the ASX 200 is called to open Friday’s session 1.1% firmer at 4728 following the broad-based rally overnight.

Local financial names should be well supported after the US financial space was the top performer, rallying 2.6%. A comment from Goldman Sachs got the sector moving. Goldman said "stronger economic growth, higher equity prices and a more supportive interest rate environment are positive for many subsectors" of financials Goldman expects overall earnings-per-share growth for the entire sector to near 24 percent next year, double the projected rate of growth for the S&P 500. It was Goldman's first positive news about the banking sector in two years.

The materials sector had a strong night too, adding 1.5% on firmer commodity prices. On the London Metals Exchange, base metals were mostly higher while in normal London trade, Rio Tinto and BHP Billiton surged 4.9% and 3.7% respectively. BHP Billiton’s ADR is calling the locally listed name 1.1% stronger at $44.80. Elsewhere, industrial and energy names should be well bid given strong overnight leads.

In summary, it looks like another widespread rally for the ASX 200 to finish the week off, with the market likely to log its first gain in three weeks. With little in the way of data, sentiment will be driven by the increasing confidence in offshore markets.

In the currency market, both the euro and AUD continued to benefit from the US dollar weakness and pickup in global risk appetite. The euro rallied to high of 1.3246 before settling around the 1.3220 level while the AUD is trading near its session highs of 09778.
Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9757 0.0100 1.03%
ASX (cash) 4728 51 1.10%
US DOW (cash) 11373 121 1.07%
US S&P (cash) 1222.8 17 1.38%
UK FTSE (cash) 5788 114 2.00%
German DAX (cash) 6973 79 1.15%
Japan 225 (cash) 10298 120 1.18%
Rio Tinto Plc (London) 44.15 2.08 4.94%
BHP Billiton Plc (London) 24.50 0.87 3.68%
BHP Billiton Ltd. ADR (US) (AUD) 44.80 0.47 1.06%
US Light Crude Oil (Jan) 87.97 1.30 1.51%
Gold (spot) 1384.0 -7.7 -0.55%
Aluminium (London) 2355 -15 -0.63%
Copper (London) 8705 30 0.35%
Nickel (London) 23750 100 0.42%
Zinc (London) 2241 24 1.08%
RBA Cash Rate to be raised by 25bp (Dec) (%) 1.00 0.00 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.

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

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