IG Markets - Morning Prices October 31

Good morning,

Risk assets bounced back yesterday with the BoJ’s decision to expand its asset purchase programme (APP) driving sentiment. The BoJ expanded its APP by a further ¥11 trillion, slightly better than the ¥10 trillion minimum the market was expecting. Sentiment in Europe was also lifted by some positive corporate earnings in Europe (BP and Deutsche Bank) and a successful Italian bond auction. Spanish GDP data also came in a little better than expected (-0.3% versus -0.4% anticipated). European equities were also well bid with gains of at least 1% for the major bourses. Risk currencies enjoyed a spike higher on the back of the BoJ decision with EUR/USD jumping from a low of around 1.288 to a high of 1.298. AUD/USD rallied from around 1.034 to 1.0384 on the decision.

Ahead of the open, we are calling the Aussie market up 0.6% at 4514. On the local economic front we have building approvals and private sector credit data due out at 11.30am Sydney time. Elsewhere in the region, Japan officials will be disappointed by the short lived effect the easing had on their currency. USD/JPY spiked to 80.14 before dropping all the way down to 79.28. With the pair back below 80 post the BoJ decision, we could see the Nikkei start to give back the ground and gained over the past few weeks. We are currently calling the Nikkei down 0.8% at 8913.

On a stock level, we expect to see a firmer start for the resource names after base metals enjoyed some gains yesterday. National Australia Bank will also be in focus after reporting full-year earnings this morning. NAB’s results were widely known following the recent update. Cash earnings came in 1% short of consensus at $5.43 billion, down 0.5% on-year, with the UK business continuing to struggle. However, the bank had a strong cost performance and the dividend was in line with expectations at 90 cents per share.

Market Price at 9:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0363 0.0020 0.20%
ASX (cash) 4514 28 0.62%
US DOW (cash) 13112 66 0.50%
US S&P (cash) 1415.2 10.9 0.77%
UK FTSE (cash) 5838 45 0.78%
German DAX (cash) 7285 88 1.22%
Japan 225 (cash) 8913 -73 -0.81%
Rio Tinto Plc (London) 31.43 0.63 2.04%
BHP Billiton Plc (London) 20.09 0.34 1.73%
BHP Billiton Ltd. ADR (US) (AUD) - - -
US Light Crude Oil (December) 85.69 0.32 0.37%
Gold (spot) 1709.5 -1.8 -0.11%
Aluminium (London) 1917 19 0.98%
Copper (London) 7737 13 0.17%
Nickel (London) 16078 142 0.89%
Zinc (London) 2048 39 1.96%
Iron Ore 119.8 -0.20 -0.17%

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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