IG Markets - Morning thoughts and opening prices 14/2/12

In US trade, markets gained ground as investor risk appetite improved on news that the Greek parliament passed the austerity package. However, the reaction to the news has been somewhat mild, as doubts linger over timing issues and the ability of Greece to live up to its promises.

Among the major averages, the Dow Jones Industrial Average was up 0.6% to close at 12874. The S&P climbed 0.7% to finish at 1352 and the NASDAQ advanced 1% to end at 2931.

The local market reacted quite positively to the Greek news, rising steadily throughout yesterday’s session. Unfortunately there have not been any new developments to spur markets higher. If anything, there seems to be growing scepticism over Greece. The Wall Street Journal reported comments from Antonis Samaras, the leader of the New Democracy party, suggesting that the measures agreed to in the parliament vote on Monday should be renegotiated after the elections. Ahead of the open, we are calling the Aussie market down six points at 4279.

With limited gains in commodities and other risk assets overnight, we expect to see subdued trading for the Aussie market in the absence of a catalyst. It is unlikely that risk assets and risk currencies will break significantly higher ahead of the EU finance minister meeting on Wednesday, when the fate of the Greek second bailout will hopefully be decided once and for all. On the economic front, we are expecting some comments from RBA Assistant Governor Mr Debelle this morning. We also have NAB business confidence at 11.30am (AEDST) today. The reporting calendar is a bit light, with Paladin and Western Areas being some of the few notable companies reporting.

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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