IG Markets - Morning Thoughts

IG Markets - Morning Thoughts

Overnight, European markets finished mixed, while the major US indices were flat to slightly weaker after the FOMC’s minutes did little to suggest more easing measures were imminent. While the Fed’s meeting minutes did mention that several members were in favour of further accommodative policies, it seems they were in the minority, and for the time being the Fed is set to maintain the status quo and monitor the progress the of the economy.

Given the mixed offshore performance and the uncertainty over the near-term direction for global markets, the ASX 200 set for a flat to marginally higher open, with the ASX 200 called to unwind approximately 7 points or 0.15% higher at 4103.

Once again the USD index edged higher, however, in direct contrast to recent days, most of the base metals and broader commodity complex managed to hold ground and edge higher. Crude oil was the standout overnight, jumping 1.8% to be north of US$86 billion, with the energy sector clearly the strongest performer. This thematic is likely to play out across the local market.

On the economic front, all eyes will be on today’s monthly Australian employment report. In contrast to last month’s surprising creation of 38,000 jobs, this month’s consensus is for no jobs to have been created and the unemployment rate to have risen to 5.2% from 5.1%. That said, this data point can best be described as a ‘chook raffle’. It is wildly unpredictable, subject to revisions and more often than not, quite bewildering.

Market Price at 6:30am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0244 0.0031 0.30%
ASX (cash) 4103 7 0.15%
US DOW (cash) 12593 -59 -0.46%
US S&P (cash) 1339.7 -1.1 -0.08%
UK FTSE (cash) 5661 18 0.32%
German DAX (cash) 6459 44 0.68%
Japan 225 (cash) 8870 19 0.21%
Rio Tinto Plc (London) 30.33 -0.07 -0.22%
BHP Billiton Plc (London) 18.11 -0.16 -0.85%
BHP Billiton Ltd. ADR (US) (AUD) 30.94 -0.11 -0.37%
US Light Crude Oil (August) 86.13 1.54 1.81%
Gold (spot) 1576.6 0.3 0.02%
Aluminium (London) 1902.75 -7 -0.35%
Copper (London) 7574.375 73 0.97%
Nickel (London) 16161.5 44 0.27%
Zinc (London) 1868.625 2 0.10%

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.

www.igmarkets.com.au

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