IG Markets - morning thoughts and opening prices

IG Markets - morning thoughts and opening prices

In US trade, markets were flat to modestly higher despite the threat of rising oil prices. It seems investors are being cautious ahead of key levels for the Dow (13,000) and S&P (1,370).

Among the major averages, the Dow Jones Industrial Average was flat at 12983. The S&P was 0.2% higher at 1366 and the NASDAQ also climbed 0.2% to finish at 2964. US markets remain near key levels with the S&P rising to its highest close since mid-2008.

The G-20 meeting which took place over the weekend is reportedly unlikely going to back an increase to Europe's bailout fund at a Summit next week on March 1st and 2nd. G20 leaders were uniform in their pleas to the EU to act quickly bolster the emergency funds and strengthen the firewall. They were also adamant that no extra funding will head to the IMF unless Europe acts first. However, the G20 meeting has not resulted in Germany wavering on their view that the eurozone firewall does not have to be bolstered in an urgent fashion. With no real conclusion out of the meeting, we have not seen any significant reaction in the risk currencies this morning.

Ahead of the open, we are calling the Aussie market down 0.6% at 4279. This will see it trade below the key 4300 level which it had struggled to break through for a while. The downside seems to have been amplified by dividends coming out of the index this morning. BHP Billiton goes ex-dividend for 51 cents this morning. With a reasonable night for commodities on Friday, we might see some upside in the resource stocks, particularly for the energy plays.

There is no major economic news due out today but all eyes will be on the Labor vote with PM Julia Gillard widely expected to win. Reporting season will be winding down this week with not many major companies set to report.

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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ENDS

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