IG Markets - Morning Prices April 13

In US trade, markets extended their gains after comments from key FOMC members invigorated hopes of more Fed easing action (QE III). Rumours also made the rounds that the China GDP data to be released later today will be better than the 8.3% expected. The gains came despite a worse-than-anticipated reading for US weekly jobless claims. Markets were also supported by the strong March new lending figures in China.

Among the major averages, the Dow Jones Industrial Average was up 1.4% at 12987. The S&P was 1.4% higher at 1388, while the NASDAQ climbed 1.3% to finish at 3056.

With investors in a risk-on mood, there were gains across equities, commodities and risk currencies. We saw major reversals higher in EUR/USD and AUD/USD. Key commodities surged in anticipation of a strong China GDP reading, with copper rising over 2%. USD weakness helped support the commodities. BHP’s ADR is pointing to a 1.5% gain at the open to $34.39. Resources are in for a strong start to the session after having had a tough beginning to the week.

Ahead of the open, we are calling the Aussie market up 0.8% at 4313. On the local economic front, we have no major data to look out for. However, it is a big day of data in China, with quarterly GDP (expectations of +8.4%, the slowest growth since 2009), fixed asset investment, industrial production and retail sales due out. This data is a key event risk driver for markets today. Once again, the Aussie dollar will be firmly in focus, as it attempts to recover from the recent slump. In US trade, AUD/USD broke above a short-term downtrend resistance line which has been in place since end of February. Traders will be looking to see if the pair can hold above this line for confirmation of the change in trend.

Market Price at 6:30am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0442 0.0065 0.63%
ASX (cash) 4313 33 0.77%
US DOW (cash) 13008 160 1.25%
US S&P (cash) 1390.0 16.5 1.20%
UK FTSE (cash) 5726.0 95 1.69%
German DAX (cash) 6770.0 84 1.26%
Japan 225 (cash) 9593 68 0.71%
Rio Tinto Plc (London) 34.87 1.50 4.50%
BHP Billiton Plc (London) 19.07 0.52 2.80%
BHP Billiton Ltd. ADR (US) (AUD) 34.39 0.49 1.45%
US Light Crude Oil (May) 103.76 0.79 0.77%
Gold (spot) 1676.0 17 1.02%
Aluminium (London) 2104.00 5 0.24%
Copper (London) 8220.00 180 2.24%
Nickel (London) 18700.00 600 3.31%
Zinc (London) 2040.00 45 2.26%

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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