IG Markets - Morning Thoughts

IG Markets - Morning Thoughts

Overnight, US equities posted small gains in a choppy but uneventful session, as investors remained largely on the sidelines as fiscal cliff negotiations continued to play out. Late in the session President Obama spoke before a group of factory workers in Detroit, continuing his campaigning for his fiscal vision, but his speech failed to have any material impact on markets.

In Europe, the major indices managed to pare earlier losses to post marginal gains as investors across the region shrugged off the weekend’s news that Italy’s technocrat Prime Minister Mario Monti would be stepping down once 2013 budget initiatives had been passed in the coming weeks. While the broader European markets brushed of this news, the Italian market itself did not fare so well, falling 2.2%.

Turning to the local market, we are currently calling the ASX 200 to unwind 25 points or 0.5% higher at 4582 in what looks like a day that will be dominated by resource names. Further strength in the iron price – it currently sits at $123.40, its highest level since July – should see the major miners extend their gains from yesterday, with BHP’ADR called up approximately 22 cents or 0.6% at $35.17. Beyond the major miners we should also expect to see broad-based strength across the materials space after the strong overnight gains across the entire metal complex.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0488 0.0014 0.14%
ASX (cash) 4571 13 0.29%
US DOW (cash) 13168 19 0.14%
US S&P (cash) 1421.8 1.8 0.12%
UK FTSE (cash) 5922 2 0.03%
German DAX (cash) 7536 12 0.16%
Japan 225 (cash) 9515 -6 -0.06%
Rio Tinto Plc (London) 32.78 0.22 0.67%
BHP Billiton Plc (London) 20.22 0.04 0.19%
BHP Billiton Ltd. ADR (US) (AUD) 35.20 0.25 0.71%
US Light Crude Oil (January) 85.69 -0.50 -0.58%
Gold (spot) 1711.50 5.7 0.34%
Aluminium (London) 2125 26 1.26%
Copper (London) 8133 57 0.70%
Nickel (London) 17762.5 449 2.59%
Zinc (London) 2296 64 2.85%
Iron Ore 123.4 2.40 1.98%

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

ends

© Scoop Media