IG Markets - Morning thoughts and opening prices

IG Markets - Morning thoughts and opening prices

US markets were relatively flat on Friday night, taking a breather after last week’s strong rally. The subdued performance came despite a surprise drop in the US unemployment rate and strong non-farm employment change numbers. Non-farm payrolls climbed by 120,000 in November and the jobless rate fell to 8.6% (from 9%). However, European markets gained significant ground after European leaders reinforced their commitment to solving the debt crisis.

Among the major averages, the Dow Jones Industrial Average slipped one point to 12019. The S&P was flat at 1244, while the NASDAQ added one point to close at 2627. The Dow finished the week up 7% and recorded its biggest weekly points gain in three years.

The US economy continues to surprise to the upside, which is a very positive step going into the end of the year. There were also reports suggesting that the ECB was looking to loan as much as EUR 200 billion to the IMF to help ease the debt crisis. This helped lift sentiment on Friday night. It is shaping up to be a big week, with the EU leaders summit on Friday expected to be a pivotal point for Europe.

Following the relatively mixed leads from US markets, we are calling the ASX 200 down three points at 4285. This is based on Saturday morning’s close for the futures. We have seen risk currencies edge higher this morning, which could indicate improved sentiment on the open. Resource stocks might get some support from commodities’ strong session on Friday night. On the economic front, investors will be looking out for ANZ job ads numbers and company operating profits data at 11.30am. Traders will be eying Whitehaven Coal and Aston Resources which are reported to be in merger talks about a $4.7 billion tie-up.

Market

Price at 8:30am AEST

Change Since Australian Market Close

Percentage Change

AUD/USD

1.0267

0.0040

0.39%

ASX (cash)

4285

-3

-0.07%

US DOW (cash)

12012

-47

-0.39%

US S&P (cash)

1245.0

-5

-0.40%

UK FTSE (cash)

5522

-8

-0.14%

German DAX (cash)

6041

-28

-0.46%

Japan 225 (cash)

8650

30

0.35%

Rio Tinto Plc (London)

33.47

0.43

1.30%

BHP Billiton Plc (London)

20.01

0.78

4.06%

BHP Billiton Ltd. ADR (US) (AUD)

36.84

0.19

0.52%

US Light Crude Oil (Jan)

101.13

0.88

0.88%

Gold (spot)

1747.0

4

0.23%

Aluminium (London)

2130.00

-15

-0.70%

Copper (London)

7890.00

100

1.28%

Nickel (London)

17740.00

990

5.91%

Zinc (London)

2052.00

7

0.34%

RBA Cash Rate to be decreased by 25bp (Dec) (%)

78.00

14.0

14.00%

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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