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IG Markets – Morning Prices 08 September 2010

IG Markets – Morning Prices

08 September 2010

On Wall St overnight, US stocks declined for the first time in five days, snapping their longest winning streak since July on renewed concerns over the European debt crisis. A Wall St Journal article reported the European bank stress tests weren’t as comprehensive as they should have been, with some banks holding riskier portfolios than what had actually been revealed.

For the session, the S&P 500 was the worst performer, down 1.2% while the NASDAQ and Dow Jones Industrial Average fell 1.1% and 1% respectively.

Locally, the ASX 200 is called to open 0.5% lower at 4550 following the softer overnight leads. All US sectors finished in red so we’re likely to see broad based weakness across the ASX.

Financials will likely see selling pressure after the US sector fell 2.3%, to be the biggest faller. The article in the Wall St Journal mentioned above sent the big financials sharply lower, with Citigroup, JPMorgan and Wells Fargo all down more than 2%.

The consumer discretionary and energy sectors also saw significant falls, declining 1.6% and 1.5% respectively. Given these leads, we should see pressure on local discretionary and energy names.

Material stocks are also likely to come under pressure after the US basic materials sector gave up 0.9%. Base metals leads on the London Metals Exchange were mixed while Rio Tinto and BHP Billiton fell 1.8% and 1.4% in normal London trade. BHP Billiton’s ADR is pointing towards a decline of 0.4%.

In summary, it looks we’ll see some broad based weakness today as the market comes to grips with the new Labor Government. In economic news, the latest round of home loans data is due at 11.30, although we’re not expecting much of an impact on the market.

Market Price at 7:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9108 -0.0018 -0.20%
ASX (cash) 4550 -23 -0.51%
US DOW (cash) 10342 -92 -0.88%
US S&P (cash) 1091.8 -11 -0.96%
UK FTSE (cash) 5383 -44 -0.80%
German DAX (cash) 6105 -33 -0.53%
Japan 225 (cash) 9086 -140 -1.52%
Rio Tinto Plc (London) 34.48 -0.63 -1.78%
BHP Billiton Plc (London) 18.93 -0.27 -1.43%
BHP Billiton Ltd. ADR (US) (AUD) 38.28 -0.16 -0.43%
US Light Crude Oil (Oct) 73.83 0.03 0.05%
Gold (spot) 1255.8 6.1 0.49%
Aluminium (London) 2161 -19 -0.87%
Copper (London) 7612 -6 -0.08%
Nickel (London) 22195 45 0.20%
Zinc (London) 2183 9 0.41%
RBA Cash Rate to be raised by 25bp (Oct) (%) 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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