IG Markets – Morning Prices 20 September 2010

IG Markets – Morning Prices 20 September 2010

IG Markets – Morning Prices

20 September 2010

In the US on Friday, stocks managed to close with modest gains after the latest CPI reading met analysts’ expectations and University of Michigan Consumer Sentiment fell to 66.6, the lowest reading in more than a year.

Once again, the tech heavy NASDAQ was the top performer, up 0.5% while the Dow Jones Industrial Average and S&P 500 both finished 0.1% firmer.

Locally, the ASX 200 is set to start the week on the back foot. It’s called to open 0.6% lower at 4613 following weakness across key sectors.

It looks like we’ll see weakness across the materials sector after the US basic materials space finished slightly lower. Leads from London were far from positive, with base metals on the London Metals Exchange mostly weaker and Rio Tinto and BHP Billiton down 0.5% and 1.2% respectively in UK trade. Not surprisingly, BHP Billiton’s ADR is calling the locally listed entity to open 0.6% lower at $38.66.

Financial and energy names are likely to weigh as well after their peers in the US fell. Both sectors were down 0.5%, with the energy space tracking the Crude Oil prices lower. Since 4pm local time on Friday, Crude Oil gave up 1.6% to US$74.97 per barrel.

On the upside, we may see some support from the industrial and consumer discretionary sectors after they gained 0.9% and 0.3% respectively.

In summary, it looks like we’re going to see a lower start to the week as heavyweight materials and energy names see some profit taking. In economic news, all eyes will be on RBA governor Stevens speech at 1.30pm. With little in the way of news locally, markets will be focused on the US Federal Reserve’s FOMC meeting which will detail its latest view on the economy, which is due to be released early Wednesday morning.

Market Price at 7:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9381 -0.0061 -0.65%
ASX (cash) 4613 -26 -0.55%
US DOW (cash) 10607 -58 -0.54%
US S&P (cash) 1124.7 -9 -0.79%
UK FTSE (cash) 5518 -74 -1.32%
German DAX (cash) 6211 -100 -1.58%
Japan 225 (cash) 9587 -39 -0.41%
Rio Tinto Plc (London) 35.58 -0.16 -0.45%
BHP Billiton Plc (London) 19.40 -0.24 -1.20%
BHP Billiton Ltd. ADR (US) (AUD) 38.66 -0.24 -0.63%
US Light Crude Oil (Nov) 74.97 -1.24 -1.62%
Gold (spot) 1278.9 -0.8 -0.06%
Aluminium (London) 2182 11 0.51%
Copper (London) 7735 -11 -0.14%
Nickel (London) 23264 -101 -0.43%
Zinc (London) 2165 -11 -0.51%
RBA Cash Rate to be raised by 25bp (Oct) (%) 12.00 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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