IG Markets - Morning Prices June 6

The much anticipated G7 meeting failed to yield any substantive headlines or joint statement. As a result, markets went through a session of quiet consolidation without a defined risk theme. It doesn’t seem like anything concrete will be decided until the results of the Greek election are confirmed on June 17, after which the window will open for more hard bargaining ahead of the EU Summit on June 28 to 29. Although US markets managed to edge higher on the back of some positive economic data, the moves in the risk currencies tell a different story as the euro and Aussie were both weaker against the greenback. The RBA decision is fuelling hopes that a bout of stimulus will be forthcoming from other central banks. This seems to be what is keeping markets steady at the moment

Ahead of the open, we are calling the Aussie market up 0.2% at 4053. The 4050 region is a key resistance zone for the local market, and therefore could attract some selling. It seems the general consensus is we will get some consolidation ahead of the ECB’s rate decision. On the local economic front, we have quarterly GDP numbers due out today, with a 0.5% rise expected. Any major variation from this consensus could result in some big moves in AUD/USD. The pair topped out at 0.98041 yesterday and is currently consolidating at around 0.974. Elsewhere in the region, Japan’s Nikkei is likely to be supported by a weaker yen after Finance Minister Azumi noted concerns about the impact of the stronger yen and weaker equities on the economy.

On a stock level, we expect a strong start for BHP Billiton, with its ADR pointing to a 0.9% rise to $31.44. After yesterday’s woeful performance on the back of a profit warning, Qantas will be in focus yet again today with broker comments expected to hit the wires. Reports that Etihad is looking to increase its stake in Virgin Australia to 10% will put the airline on the radar. Ramelius Resources will also be on the radar after its shares jumped 18% yesterday. A block trade of 16.63 million shares of RMS crossed at $0.47 on Monday, representing 5% of the company. Following the RBA’s rate cut decision yesterday, the banks could come out with their interest rate decisions at any time.

Market Price at 6:30am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9739 -0.0060 -0.61%
ASX (cash) 4053 9 0.23%
US DOW (cash) 12179 13 0.10%
US S&P (cash) 1289.4 6.3 0.49%
UK FTSE (cash) 5263 25 0.48%
German DAX (cash) 6002 -18 -0.29%
Japan 225 (cash) 8382.00 -21 -0.24%
Rio Tinto Plc (London) 27.72 - -
BHP Billiton Plc (London) 16.95 - -
BHP Billiton Ltd. ADR (US) (AUD) 31.44 0.28 0.89%
US Light Crude Oil (July) 84.25 -0.58 -0.68%
Gold (spot) 1618.6 0.9 0.06%
Aluminium (London) 1972 - -
Copper (London) 7341 - -
Nickel (London) 16098 - -
Zinc (London) 1903 - -

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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