IG Markets - morning thoughts and opening prices

IG Markets - morning thoughts and opening prices

In US trade, markets rebounded from the previous day’s big falls on improved optimism that the Greek debt swap will proceed, and also on better-than-expected ADP US jobs data. The ADP numbers are a good indicator in the build-up to Friday’s US non-farm payrolls data. Reports that the Fed is considering a new type of bond-buying program also helped to lift sentiment.

Among the major averages, the Dow Jones Industrial Average was up 0.6% at 12837. The S&P was 0.7% higher at 1353 and the NASDAQ advanced 0.9% to finish at 2936.

Approximately 58% of financial institutions are said to have agreed to participate in the Greek bond swap, which has lowered the chances of a near-term messy Greek default. Reduced Greece pessimism saw a massive rebound in risk assets and most risk currencies. With commodities higher, we expect to see a recovery in the local resource stocks this morning. Mining heavyweight BHP Billiton is likely to be greeted by some firm bids this morning, after falling into a key support zone yesterday. BHP’s ADR is currently pointing to a 1.2% gain at the open.

Ahead of the open, we are calling the Aussie market up about 0.5% at 4162. On the economic front, we have employment change and unemployment rate numbers due out at 11.30am (Melbourne time). Many analysts were surprised by last month’s strong jobs numbers and today’s figures will be a good indication of whether analysts’ predictions of a soft jobs market have merit. These numbers are likely to have significant impact on what the RBA does going forward, and might also result in a big move for the Aussie dollar.

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.

www.igmarkets.com.au

ENDS

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