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IG Markets - Morning thoughts and opening prices


Good morning,

In US trade, markets were mostly weaker on some mildly disappointing unemployment claims data. However, there was a slight recovery in risk sentiment as commodity currencies like the Aussie dollar recovered after having been sold off through the Asian and European sessions.

Among the major averages, the Dow Jones Industrial Average was up 0.2% at 13146. The S&P was 0.2% lower at 1403 and the NASDAQ shed 0.3% to finish at 3095.

Today marks the end of the quarter and it is great to finally see the Aussie market trade at its highest level of the year this week. The inverse relationship between the Aussie market and the AUD has become apparent. A steep slide in the local currency from the highs has encouraged buying in local equities. The Aussie dollar found a bottom against the greenback in US trade, with support kicking in at around 1.03. The strong bounce has seen AUD/USD approach 1.04 this morning. However the short term trend is still firmly to the downside.

Oil had yet another tough night, sliding around 2% as growth concerns ramp up. This will keep pressure on the energy sector today. BHP’s ADR is pointing to a 0.3% gain at the open, which might help to limit today’s downside. The local banks might also come under pressure after a broad sell-off in US and European financials.

Ahead of the open, we are calling the Aussie market down 0.2% at 4328. After yesterday’s stellar recovery from the lows, we wouldn’t be surprised to see the local market outperform once again. Investors will be hoping the positive momentum we saw into the US close filters through to the Asian session. However, towards the end of the session, some investors might be looking at closing positions ahead of the weekend. European leaders are set to discuss the region’s firewall later today, with no major surprises expected. Locally, there is nothing major on the economic front to look out for.

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MarketPrice at 7:30am AESTChange Since Australian Market ClosePercentage Change
AUD/USD1.03880.00180.17%
ASX (cash)4328-10-0.23%
US DOW (cash)13145270.21%
US S&P (cash)1403.0-2.0-0.14%
UK FTSE (cash)5758.0-35-0.60%
German DAX (cash)6907.0-72-1.03%
Japan 225 (cash)10066-41-0.41%
Rio Tinto Plc (London)33.750.591.78%
BHP Billiton Plc (London)18.77-0.08-0.42%
BHP Billiton Ltd. ADR (US) (AUD)34.360.110.3%
US Light Crude Oil (May)103.33-1.99-1.89%
Gold (spot)1661.01.00.06%
Aluminium (London)2134.00-35-1.61%
Copper (London)8350.0010.01%
Nickel (London)17150.00-425-2.42%
Zinc (London)2005.0050.25%
RBA Cash Rate to be decreased by 25bp (Apr) (%)33.001010.00%

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.

www.igmarkets.com.au

ENDS

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