IG Markets Morning Prices

IG Markets Morning Prices

Good morning,

In the US overnight, the major indices all started the week firmly in the black as the bulls continued their push higher ahead of major earnings news later in the week.

Technology stocks were the standout performers, with the NASDAQ rising 1%. Elsewhere, the Dow Jones Industrial Average added 0.9% and the broad-based S&P 500 0.6%.

Locally, the ASX 200 is called to open the session 0.3% higher at 4801 following the strong overnight leads. The materials sector is likely to add the bulk of the points after it was the best performer in US trade, rising 1.1%.

Materials names managed to shrug of weaker leads from commodities markets overnight, with base metal leads on the London Metals Exchange mostly lower. It didn’t affect equities with both Rio Tinto and BHP adding 2.5% and 1.7% in London trade, and BHP’s ADR calling the locally listed stock 0.3% higher at $45.07. However, on the downside there is likely to be further weakness among gold names after the precious metal slumped another 1.3% to US$1335.6/oz. It’s also worth noting that Newcrest is due to report second quarter production numbers sometime this morning.

Elsewhere, industrial stocks are likely to be well supported following the good session from their US counterparts; US industrials added 0.9% as the likes of Caterpillar, Boeing and Deere & Co all rose more than 1%. Gains of 0.4% for both the energy and consumer discretionary sectors should help support those relevant stocks.

In summary, it looks like we’re set for further strength today, with gains likely to be fairly broad-based. In terms of economic data, the big focus today will be the release of Q4 CPI figures. The market is expecting CPI growth of 0.7% but given the weakness in yesterday’s PPI number, we feel the risk is clearly to the downside. Food price inflation caused by the Qld floods is unlikely to show up until Q1 figures.

In currency markets, the AUDUSD had a strong session as it tracked gains among US equities. It rose to an overnight high of 1.0020 before retreating slightly; it currently hovering around the 0.9972 level and is likely to be fairly quiet ahead of CPI figures at 11.30am. The euro had a quiet night, consolidating its recent strength around the 1.3636 level.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9988 0.0102 1.03%
ASX (cash) 4801 15 0.31%
US DOW (cash) 11979 75 0.63%
US S&P (cash) 1291.7 5 0.37%
UK FTSE (cash) 5961 51 0.87%
German DAX (cash) 7092 8 0.12%
Japan 225 (cash) 10390 58 0.56%
Rio Tinto Plc (London) 43.48 1.05 2.46%
BHP Billiton Plc (London) 24.33 0.40 1.65%
BHP Billiton Ltd. ADR (US) (AUD) 45.07 0.15 0.32%
US Light Crude Oil (Mar) 87.86 -1.74 -1.94%
Gold (spot) 1335.6 -16.90 -1.25%
Aluminium (London) 2416.00 -19 -0.78%
Copper (London) 9536.00 66 0.70%
Nickel (London) 26051.00 -149 -0.57%
Zinc (London) 2311.00 -10 -0.43%
RBA Cash Rate to be raised by 25bp (Feb) (%) 3.00 0.0 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.

ENDS

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