IG Markets – Morning Prices

IG Markets – Morning Prices 10 September 2010

IG Markets – Morning Prices

10 September 2010

In the US overnight, stocks continued their push higher on the back of stronger-than-expected US jobless claims and a sharply lower trade balance. However, volumes continued to be very light. Late in the session, equities trimmed gains after rumours hit the street that Deutsche Bank was considering an $11.4 billion stock issue.

The broad based S&P 500 was the top performer, adding 0.5% while the NASDAQ and Dow Jones Industrial Average both gained 0.3%.

In local trade, the ASX 200 is called to open 0.5% firmer at 4604, the first time above the 4600 level in 2.5 months.

We’re likely to see some support for financial names today after the US financials sector was the standout performer, adding 1.3%. Despite pairing gains late following the Deutsche Bank speculation, both Bank of America and Goldman Sachs rose more 1%, with the sector boosted by a note from prominent financials analyst Dick Bove who listed 16 potential takeover targets.

Elsewhere, positive leads came from the defensive sectors, with healthcare and utilities outperforming significantly while the consumer staples, discretionary and energy sectors all gained modestly.

Material names could be the main drag after the US basic materials sector gave up 0.6%. On the LME, base metals were mostly firmer while in normal London trade, Rio and BHP added 2% and 1.9% respectively. BHP’s ADR is calling the locally listed stock 0.1% stronger at $38.21.

In summary, with stiff resistance seen through 4600 we’re likely to see profit takers move in swiftly if the index gets above this level. With the market currently sitting on gains of 1.1%, it would only be natural for traders to look to lock in some points.

Market Price at 7:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9232 0.0025 0.27%
ASX (cash) 4604 22 0.47%
US DOW (cash) 10406 22 0.21%
US S&P (cash) 1102.6 5 0.42%
UK FTSE (cash) 5467 50 0.92%
German DAX (cash) 6174 29 0.47%
Japan 225 (cash) 9161 73 0.80%
Rio Tinto Plc (London) 35.40 0.70 2.00%
BHP Billiton Plc (London) 19.26 0.36 1.90%
BHP Billiton Ltd. ADR (US) (AUD) 38.21 0.03 0.07%
US Light Crude Oil (Oct) 74.29 -0.44 -0.60%
Gold (spot) 1244.2 -12.2 -0.97%
Aluminium (London) 2106 -19 -0.89%
Copper (London) 7568 48 0.64%
Nickel (London) 22600 190 0.85%
Zinc (London) 2140 0 0.00%
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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