IG Markets – Morning Prices

IG Markets – Morning Prices 23 August 2010

IG Markets – Morning Prices

23 August 2010

On Wall St on Friday, concerns over the economic recovery weighed on the market early, although the major indices did manage to finish the session significantly off the lows. For the session, the technology laden NASDAQ was the top performer, rising 1 point to 2180. On the downside, the S&P 500 fell 0.4% while the Dow Jones Industrial Average lost 0.6%.

Ahead of the open, the ASX 200 is called to open 25 points lower at 4405 following the weaker overseas leads as well as the uncertainty stemming from the election result.

In terms of sectors, the only big mover in US trade was the energy sector, closing the session 1.2% following another fall in Crude Oil prices. It lost 1% for the session and could see some of the local energy plays coming under pressure.

Elsewhere, the material, financial and industrial sectors were all down between 0.3% and 0.5% and are likely to weigh modestly. Base metal leads from the London Metals Exchange were mixed while in normal London trade, Rio Tinto fell 0.2% while BHP Billiton managed to add 0.6%. BHP Billiton’s ADR is calling the locally listed stock 0.2% higher at the open.

Obviously the big talking point is the hung parliament, the first one in 70 years. With it comes great uncertainty, which is the markets worst enemy. There’s no doubt the weekend’s result will add to investor nervousness in the short-term, and possibly longer depending on how the government ends up being formed. Worries about less decisive policy making and concerns over less friendly business stance from the Greens, who were the big winner on Saturday are likely to be some of the major issues.

At lot of cash was sidelined ahead of election and this result certainly isn’t likely to trigger a quick re-entry. The perception of heightened political risk from offshore investors is likely to remain, too.

In summary, the combination of weaker offshore leads and concerns political concerns should see the local market broadly weaker today.

Market Price at 7:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.8883 -0.0022 -0.24%
ASX (cash) 4402 -29 -0.65%
US DOW (cash) 10245 -15 -0.15%
US S&P (cash) 1074.9 1 0.09%
UK FTSE (cash) 5212 0 0.01%
German DAX (cash) 6029 -45 -0.74%
Japan 225 (cash) 9175 7 0.08%
Rio Tinto Plc (London) 32.85 -0.05 -0.17%
BHP Billiton Plc (London) 18.21 0.11 0.61%
BHP Billiton Ltd. ADR (US) (AUD) 37.96 0.06 0.15%
US Light Crude Oil (Oct) 73.95 -0.72 -0.96%
Gold (spot) 1228.8 -3.5 -0.28%
Aluminium (London) 2040 -26 -1.26%
Copper (London) 7255 -13 -0.18%
Nickel (London) 21550 70 0.33%
Zinc (London) 2058 -13 -0.63%
RBA Cash Rate to be raised by 25bp (Sep) (%) 3.00 0.00 0.00%

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.

ENDS

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