Morning Prices 06 September 2010

IG Markets – Morning Prices 06 September 2010

IG Markets – Morning Prices

06 September 2010

In the US on Friday, stocks closed higher for the fourth straight session after a stronger-than-expected nonfarm payrolls report presented further evidence the US economy is not headed for a second recession.

The NASDAQ was the top performing index, adding 1.5% while the broad based S&P 500 and Dow Jones Industrial Average rose 1.3% and 12% respectively.

Locally, the ASX 200 is called to open 0.9% higher at 4580 following the firmer leads.

Gains should be broad based this morning after all US sectors finished in the black. Specifically, most of the points should come from the heaviest weighted sectors after the US financials, industrials, consumer discretionary and materials sectors were the top performers. Financials added 2.1% while the other three were all up between 1.2% and 1.5%.

After a fall of nearly 10% since the beginning of May for the KBW Banking index, bargain hunters were very active among the bigger names, with Goldman Sachs adding the most, up 5.4%.

The materials sector should have a good session, even with BHP Billiton paying a dividend of approximately 49c. Base metals were mostly higher on the London Metals Exchange while Rio Tinto and BHP Billiton added 1.5% and 1.8% in normal London trade. Locally, BHP Billiton’s ADR is pointing towards a gain of 0.9% at open, even factoring in the ex-dividend payment.

In summary, it looks like we’re set for a positive open to the new week. ANZ jobs ads at 11.30am will be keenly watched, and could be a precursor to the latest unemployment reading due Thursday. However, with US markets closed for the Labor Day holiday this evening, we’re unlikely to see a huge amount of volume today, especially with the RBA rates decision due tomorrow.

Market Price at 7:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9158 0.0078 0.85%
ASX (cash) 4580 39 0.86%
US DOW (cash) 10433 131 1.27%
US S&P (cash) 1103.4 15 1.39%
UK FTSE (cash) 5441 51 0.95%
German DAX (cash) 6146 49 0.81%
Japan 225 (cash) 9160 52 0.57%
Rio Tinto Plc (London) 35.36 0.53 1.52%
BHP Billiton Plc (London) 19.36 0.35 1.84%
BHP Billiton Ltd. ADR (US) (AUD) 38.65 0.32 0.85%
US Light Crude Oil (Oct) 74.42 -0.33 -0.44%
Gold (spot) 1247.7 -3.3 -0.26%
Aluminium (London) 2148 3 0.14%
Copper (London) 7693 63 0.83%
Nickel (London) 21774 -46 -0.21%
Zinc (London) 2165 17 0.79%
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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