IG Markets - morning thoughts and opening prices

IG Markets - morning thoughts and opening prices

In US trade, markets retreated after the Greece debt negotiations failed to yield a result. Greece moved closer to the possibility of a chaotic default, after eurozone officials rejected a final offer from the country’s private bondholders. However, we actually saw markets come off their lows, suggesting investors are now starting to pay less attention to the Greece situation. Reporting season in the US continues to yield some encouraging results in the face of tough economic conditions.

Among the major averages, the Dow Jones Industrial Average lost 0.3% to close at 12675. The S&P shed a point to 1315, but the NASDAQ added 0.1% to close at 2787. A few key results were released after market close with Apple smashing expectations.

We saw significant weakness going into the end of the Asian session yesterday, as markets grew increasingly bearish on Europe. This resulted in a poor start for Europe and the US with risk assets struggling Markets managed to shrug off the Greece news with a broad recovery across risk assets.

AUD/USD slumped from its highs in the Asian and European sessions, but managed to recover some ground in US trade. Australia’s CPI report for the fourth quarter is due out at 11.30am. Forecasts are for annual underlying inflation of 2.4%, which is well within the RBA’s 2% to 3% target range. This would help make the case for a February rate cut. The retailers are likely to be in focus following the data. Apple’s results will likely give the bulls further encouragement. Ahead of the open, we are calling the Aussie market up 0.3% at 4236. The strong recovery in risk assets could see the ASX 200 extend its gains today.

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.

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