IG Markets Morning Prices Fri 25 Feb

On Wall Street overnight, the major indices rallied strongly from their lows to finish the session mixed as oil prices retreated dramatically following unconfirmed rumours that Libyan leader Gaddafi had been shot dead. This eased concerns that the rocketing oil price will hinder the global economic recovery.
The tech-heavy NASDAQ was the top performer, up 0.6% while the S&P 500 finished the session 0.1% weaker. After being down more than 100 points early, the Dow Jones Industrial Average closed 0.3% lower.

Locally, the ASX 200 is called to open the session 0.5% weaker at 4786 despite the rally from the lows on Wall Street. It looks like there will be a fair bit of selling across the market with the heavily weighted sectors likely to come under the most pressure.

The energy sector should be hit pretty hard following the 2.7% fall in Crude Oil prices to US$96.65/barrel. The US sector was the biggest decliner, down 1.4% as the likes of ExxonMobil, Chevron and ConocoPhillips were all lower by more than 0.4%.

Materials names will likely see some selling too after mixed leads from Europe and a 0.5% fall for the US basic materials sector. On the London Metals Exchange, base metals were mixed with aluminium and copper edging slight gains; nickel and zinc were down 2.5% and 0.5% respectively. In London equities trade, Rio Tinto and BHP Billiton were mixed too, down 0.9% and up 1% respectively. BHP Billiton’s ADR is calling the locally listed name to open 1.1% softer at $45.48.

Gold stocks and other safe haven assets might see a bit of a retreat as well after the precious metal retreated 0.6% and is currently hovering around the US$1402/oz level.

The financial sector could see some weakness too after US financials retreated 0.2%. On the upside, gains among US industrials (0.6%), consumer discretionary (0.6%) and health care (0.3%) sectors could help pare the losses.

In summary, it looks like we’re set for a weak end to the week as stocks continue to feel the uncertainty emanating out of the Middle East. There is nothing set for release in the way of economic news but the earnings season rolls on. Among the big names to report today are Crown, Harvey Norman, Iluka, Roc Oil and Woolworths.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0090 0.0013 0.13%
ASX (cash) 4786 -24 -0.49%
US DOW (cash) 12044 -97 -0.79%
US S&P (cash) 1303.5 -7 -0.57%
UK FTSE (cash) 5902 -17 -0.29%
German DAX (cash) 7114 -73 -1.02%
Japan 225 (cash) 10420 -78 -0.74%
Rio Tinto Plc (London) 41.70 -0.37 -0.88%
BHP Billiton Plc (London) 23.61 0.23 0.98%
BHP Billiton Ltd. ADR (US) (AUD) 45.48 -0.51 -1.12%
US Light Crude Oil (Apr) 96.65 -2.02 -2.05%
Gold (spot) 1402.3 -9.03 -0.64%
Aluminium (London) 2540.00 8 0.32%
Copper (London) 9515.00 35 0.37%
Nickel (London) 27775.00 -715 -2.51%
Zinc (London) 2474.00 -13 -0.52%
RBA Cash Rate to be raised by 25bp (Mar) (%) 6.00 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.

ENDS

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