IG Markets - Morning Prices June 25

Once again, this week promises to be another volatile one, dominated by the endless parade of headlines out of Europe. While US markets managed to end the week with some very modest gains after a drubbing during Thursday’s session, European markets closed firmly in the red as investors continued to grow tired of the multitude of issues plaguing Europe.

Over the weekend the ECB's decision to reduce the ratings threshold for banks' collateral was well flagged and hence the temporary boost it gave the euro quickly faded. Also, the proposal for a 'growth package' worth 1% of EU GDP or €130 billion out of the Rome meeting of the leaders of Germany, France, Italy and Spain was predictably vague, lacking details on content and financing and thus was given scant regard. So this week’s attention turns to yet another EU Summit. There have been many such events over the last two years, each of which has failed to deliver anything other than disappointment and confusion. There is absolutely no reason to expect this one to be any different.

Turning to today’s session, the local market is currently called for a flat to marginally negative start, with the ASX 200 called to unwind approximately 8 points or 0.2% weaker at 4040. Despite the slight reprieve for US stocks on Friday, the tone of the week is likely to be one of scepticism and caution ahead of the EU Summit, with volumes sure to be thin. Also weighing on the local market today is 34 companies going ex-dividend, taking approximately 7.8 points out of the index. Another subplot to this week’s trading action is likely to be tax-loss selling with just five days left in the current financial year.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0049 -0.0007 -0.06%
ASX (cash) 4046 -2 -0.06%
US DOW (cash) 12628 42 0.33%
US S&P (cash) 1330.1 4.3 0.32%
UK FTSE (cash) 5530 10 0.18%
German DAX (cash) 6275 -19 -0.30%
Japan 225 (cash) 8833 34 0.39%
Rio Tinto Plc (London) 29.82 -0.18 -0.61%
BHP Billiton Plc (London) 17.70 -0.49 -2.69%
BHP Billiton Ltd. ADR (US) (AUD) 31.50 -0.02 -0.06%
US Light Crude Oil (August) 80.64 2.00 2.54%
Gold (spot) 1573.0 9.0 0.58%
Aluminium (London) 1862 2 0.12%
Copper (London) 7310 20 0.28%
Nickel (London) 16575 254 1.55%
Zinc (London) 1800 -14 -0.77%
www.igmarkets.com.au

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