IG Markets Morning Prices

Good morning,

On Wall Street overnight, US stocks continued their push higher, closing at fresh two-year highs on more in line to stronger-than-expected economic data and an upbeat outlook from transportation giant Federal Express. The Philly Fed manufacturing index particularly impressed, coming in at 24.3 versus expectations of 14.8.

The tech-heavy NASDAQ was the top performer, rising 0.8% while the S&P 500 and Dow Jones Industrial Average added 0.6% and 0.4% respectively.

Locally, the ASX 200 is called to open the session flat at 4782 despite stronger overnight leads, with all US sectors bar financials finished firmly in the black.

Despite a gain of 0.6% for the US materials sector, it looks like we’re going to see some selling pressure among local material names. Leads from the London Metals Exchange were mostly lower while BHP and Rio Tinto fell 0.8% and 0.5% in normal London trade. Despite the strong US materials performance, BHP’s ADR is calling the locally listed entity 0.2% lower at $45.29. Gold names should see weakness as well after the precious metal futures fell 0.8% to be trading around the US$1369.5/oz level.

Financials could also see some weakness given some negative sentiment in the US. Credit card giants Visa and Mastercard both slumped more than 10% on news the Federal Reserve plans changes to debit-card transaction fees that could affect the credit-card processing firms. Elsewhere, the likes of Goldman Sachs, JP Morgan and Morgan Stanley were down more than 0.5%.

On the upside, we may see some gains among the consumer discretionary and staples sectors, which could help offset some of the weakness elsewhere. The Industrial names are likely to do well too after Federal Express issued a strong outlook and rose 2%.

In summary, it looks like we’re set for a day of tug of war, with selling among materials and financials likely offset by strength elsewhere.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9900 0.0036 0.36%
ASX (cash) 4789 5 0.10%
US DOW (cash) 11498 26 0.23%
US S&P (cash) 1244.0 8 0.61%
UK FTSE (cash) 5884 1 0.02%
German DAX (cash) 7025 20 0.29%
Japan 225 (cash) 10340 20 0.19%
Rio Tinto Plc (London) 44.07 -0.23 -0.53%
BHP Billiton Plc (London) 25.05 -0.20 -0.77%
BHP Billiton Ltd. ADR (US) (AUD) 45.29 -0.09 -0.20%
US Light Crude Oil (Jan) 87.85 -0.55 -0.62%
Gold (spot) 1369.5 -10.5 -0.76%
Aluminium (London) 2317 7 0.30%
Copper (London) 9005 -10 -0.11%
Nickel (London) 24620 317 1.30%
Zinc (London) 2231 -17 -0.76%
RBA Cash Rate to be raised by 25bp (Feb) (%) 7.50 -2.00 -2.00%

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.

ENDS

© Scoop Media