IG Markets - Morning Prices April 26

In US trade, markets rallied after Fed chief Ben Bernanke said he remains prepared to do more to stimulate growth if needed. The gains came despite a slightly more hawkish tone from the FOMC meeting, which caused an initial dip in risk assets. A strong round of corporate earnings, including Apple’s monster result, also spurred the market to its gains.

Among the major averages, the Dow Jones Industrial Average was up 0.7% at 13091. The S&P was 1.4% higher at 1391, while the NASDAQ surged 2.3% to finish at 3030. Apple shares put on nearly 9% and Boeing climbed over 5% following positive earnings.

Key commodities gained, which were also aided by a weaker US dollar. The Aussie dollar managed to recover from its Tuesday lows when it got hammered following the CPI data. AUD/USD now faces significant resistance from previous highs between 1.0380-1.0420 Despite the risk-on reaction to comments made by Fed Chairman Bernanke in the wake of the FOMC meeting, we could see China growth concerns resurface after Caterpillar results saw sales of construction equipment fall in China and Brazil. BHP’s ADR is pointing to a 1% gain at the open to $35.44. This will see it break a downtrend resistance line which has been in place since April last year. Newcrest Mining will remain in focus after receiving some broker downgrades following its disappointing production report. Seven West Media shares will be under pressure today after announcing an earnings downgrade post market close on Tuesday. The downgrade is mainly a result of a weaker-than-anticipated advertising market.

Australian investors will return to trade today after the Anzac day holiday to find green across the boards. Ahead of the open, we are calling the Aussie market up 1% at 4402. This sees the market open near its October 28 2011 intra-day high of 4417. This level will be the key test for the bulls, and investors are likely to start getting nervous here. As a result, we will see some key levels tested today, and should the market manage to hold above them, this could be the beginning of a sustained move higher.

Market Price at 6:30am AEST Change Since Australian Market Close (24th Apr 2012) Percentage Change
AUD/USD 1.0356 0.0095 0.93%
ASX (cash) 4402 42 0.96%
US DOW (cash) 13085 150 1.16%
US S&P (cash) 1391.0 22 1.61%
UK FTSE (cash) 5727 52 0.92%
German DAX (cash) 6697 145 2.21%
Japan 225 (cash) 9588 100 1.05%
Rio Tinto Plc (London) 34.80 1.04 3.08%
BHP Billiton Plc (London) 19.36 0.37 1.95%
BHP Billiton Ltd. ADR (US) (AUD) 35.44 0.36 1.03%
US Light Crude Oil (Jun) 102.87 0.00 0.00%
Gold (spot) 1645.0 10 0.61%
Aluminium (London) 2071.00 12 0.58%
Copper (London) 8205.00 160 1.99%
Nickel (London) 17605.00 55 0.31%
Zinc (London) 2006.00 19 0.96%

© Scoop Media