IG Markets - Morning Prices April 18

In US trade, markets rallied after a successful Spanish bond auction which saw yields cool. This saw investors less pessimistic about Europe and lifted risk assets all round. Sentiment was also helped by an upgrade of the global growth outlook by the IMF and a surprisingly strong German ZEW index.

Among the major averages, the Dow Jones Industrial Average was up 1.5% at 13116. The S&P was 1.6% higher at 1391, while the NASDAQ climbed 1.8% to finish at 3043.

Commodities were generally stronger as the US dollar retreated and growth concerns eased. As a result, resource stocks will be in focus today, with a strong recovery on the cards. BHP’s ADR is pointing to a 1.1% gain at the open to $34.52. Yesterday, we saw Rio Tinto post a fairly disappointing production report which was greeted by some selling into the close of the session. We expect to see some broker reactions to the report come through and this may influence trade in the stock. BHP will also be in focus with its production report due out today. It seems both miners’ production were stronger on year, but lower on quarter due to weather related issues. Fortescue Metals has its production report tomorrow and will be one to watch ahead of the report.

Ahead of the open, we are calling the Aussie market up 1.1% at 4336. On the local economic front, we have MI leading index data due out today. However, this is not a huge market mover and focus is likely to remain on the big miners’ production reports. A big reversal higher in the Aussie dollar could cap gains for equities today. AUD/USD traded as high as 1.0418 and is currently hanging at around 1.04. Some of the stocks to watch are CSL Limited, which has had a stellar run and is approaching its 2011 high. Macquarie Group will also be in focus after reports for US peers Citigroup and Goldman Sachs both exceeded expectations.

Market Price at 6:30am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0397 0.0080 0.78%
ASX (cash) 4336 47 1.10%
US DOW (cash) 13088 181 1.40%
US S&P (cash) 1388.0 19 1.39%
UK FTSE (cash) 5756.0 110 1.95%
German DAX (cash) 6794.0 171 2.58%
Japan 225 (cash) 9606 141 1.49%
Rio Tinto Plc (London) 35.18 0.78 2.27%
BHP Billiton Plc (London) 19.27 0.34 1.80%
BHP Billiton Ltd. ADR (US) (AUD) 34.52 0.37 1.08%
US Light Crude Oil (May) 104.22 1.37 1.33%
Gold (spot) 1651.0 1 0.06%
Aluminium (London) 2077.00 12 0.58%
Copper (London) 8050.00 66 0.83%
Nickel (London) 17825.00 320 1.83%
Zinc (London) 1992.00 -4 -0.20%

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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