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IG Markets - Morning thoughts and opening prices
Good morning
Overnight, European and US equities enjoyed a session of solid gains on the back of some better-than-expected US economic reports and despite ongoing pessimism ahead of today’s EU summit. Speculation that China will enact further stimulus measures to buffer its economy from a global slowdown also aided sentiment
With positive leads from European and US markets, the ASX 200 is set to open the session in positive territory, set to unwind approximately 31 points or 0.75% firmer at 4074. Gains on the session are likely to be broad based. Despite some marginal strengthening of the US dollar overnight, some of the base metal complex managed to edge higher. This occurrence and talk of Chinese stimulus measures saw some investors return to material names that have been stuck in the doldrums in recent weeks. BHP’s ADR is suggesting the local stock will open 0.7% firmer at $3081. Energy was the best performing sector in the US and with crude prices jumping 1.6% overnight to US$80.51, local energy stocks are likely to be among the pace setters today.
As mentioned yesterday, one of the sure signs of a change in sentiment will be when we have a sustained period of gains, where it is cyclical growth sectors (such as materials and energy) leading the advancers (not defensives), and base metals breaking out of their recent malaise. Last night’s US trade was just one session, but at least it was a step in the right direction.
| Market | Price at 6:30am AEST | Change Since Australian Market Close | Percentage Change |
| AUD/USD | 1.0078 | 0.0016 | 0.15% |
| ASX (cash) | 4074 | 31 | 0.75% |
| US DOW (cash) | 12629 | 63 | 0.50% |
| US S&P (cash) | 1330.4 | 9.4 | 0.71% |
| UK FTSE (cash) | 5534 | 47 | 0.85% |
| German DAX (cash) | 6231 | 57 | 0.92% |
| Japan 225 (cash) | 8778 | 47 | 0.54% |
| Rio Tinto Plc (London) | 29.11 | 0.21 | 0.72% |
| BHP Billiton Plc (London) | 17.37 | 0.13 | 0.77% |
| BHP Billiton Ltd. ADR (US) (AUD) | 30.81 | 0.21 | 0.69% |
| US Light Crude Oil (August) | 80.51 | 1.29 | 1.62% |
| Gold (spot) | 1575.1 | 4.1 | 0.26% |
| Aluminium (London) | 1871 | 26 | 1.41% |
| Copper (London) | 7405 | 46 | 0.63% |
| Nickel (London) | 16250 | -45 | -0.28% |
| Zinc (London) | 1756 | -20 | -1.13% |
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.
Please contact IG Markets if you require market commentary or the latest dealing price.
Cameron
Peacock
Market Analyst
IG Markets
www.igmarkets.com.au
ENDs
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