IG Markets Morning Prices

Good morning,

In the US overnight, the market finished with broad-based declines as a number of disappointing Q4 earnings reports, mainly from the financial sector weighed on the bourse. Lower-than-expected housing starts also dragged on confidence.

The tech-heavy NASDAQ was the worst performer, down 1.5% while the S&P 500 lost 1%. The Dow Jones Industrial Average outperformed, only declining 0.1%.

Locally, the ASX 200 is called to open the session sharply lower, down 0.9% at 4794 following the weaker offshore leads. It looks like most of yesterday’s good work will be undone today, with broad-based selling expected.

The two heaviest weighed sectors, financials and materials are likely to get hit hard after they were down 2.2% and 2.3% on US trade. Goldman Sachs was the big drag in the financials space, closing lower by more than 4% after the Wall Street darling posted a 53% decline in quarterly profit, with trading revenues the most worrying aspect. An inline result from Wells Fargo couldn’t rescue the sector, with the likes of Bank of America, JP Morgan, Citigroup and Wells Fargo all down more than 0.8%.

In the materials space, leads are not good; base metals were all down between 1.1% and 2.4% on the London Metals Exchange while in normal London equities trade, Rio Tinto and BHP fell 1.7% and 1.3% respectively. BHP’s ADR is calling the locally listed stock 1.8% weaker at $45.23 on the open, although this could change dramatically with its Q4 production numbers due at 8.30am.

Elsewhere, the picture doesn’t look much better with selling anticipated in the energy, industrial and consumer discretionary sectors. They were all down more than 1% in US trade.

In summary, it looks like widespread selling across the Australian market today. The only saving grace may be a set of stronger-than-expected numbers out of China when it reports its CPI, GDP, Industrial Production & Retail Sales at 1pm. The market will be focussing on the CPI read, with 4.6% expected from 5.1% in December

In currency markets, the US dollar had a very weak night, dropping to fresh eight-week lows. This in turn boosted both the AUD and Euro, although the Aussie couldn’t hold onto its gains. The AUDUSD is currently at 1.0001, well off its session highs of 1.0075 while the Euro is at 1.3472, down from 1.3537.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0001 -0.0034 -0.34%
ASX (cash) 4794 -41 -0.85%
US DOW (cash) 11817 -51 -0.43%
US S&P (cash) 1281.0 -17 -1.32%
UK FTSE (cash) 5973 -101 -1.67%
German DAX (cash) 7079 -78 -1.09%
Japan 225 (cash) 10433 -110 -1.04%
Rio Tinto Plc (London) 43.75 -0.75 -1.69%
BHP Billiton Plc (London) 24.70 -0.32 -1.28%
BHP Billiton Ltd. ADR (US) (AUD) 45.23 -0.82 -1.78%
US Light Crude Oil (Mar) 91.71 -0.76 -0.82%
Gold (spot) 1369.5 -4.94 -0.36%
Aluminium (London) 2435.00 -27 -1.10%
Copper (London) 9587.00 -139 -1.43%
Nickel (London) 25710.00 -639 -2.43%
Zinc (London) 2395.00 -58 -2.36%
RBA Cash Rate to be raised by 25bp (Feb) (%) 4.00 -1.0 -1.00%

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

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