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IG Markets – Morning Prices 06 October 2010

IG Markets – Morning Prices

06 October 2010

Overnight, US markets surged to their highest levels since May on renewed optimism about the outlook for the economy over the final quarter of the year.

The Dow Jones Industrial Average added 1.8% to 10944, the NASDAQ soared 2.5% while the S&P 500 closed 2.1% higher at 1160, finally breaking out above the 1150 level which had been a ceiling for index over the last 5 months.

There were several reasons for the robust overnight gains.

Firstly, Ben Bernanke made it quite clear that the Fed would be embarking on further QE in the coming months. Secondly, the BOJ cut its overnight cash rate to effectively zero and set up a new fund to buy bonds and other assets in order to stimulate its economy. Thirdly, the ISM services index showed a healthy pickup, rising to 53.2 in September from 51.5 in August with both the employment and new orders components posting strong gains. Finally, JP Morgan announced it expected itself and other large-cap banks would beat Q3 earnings expectations due to strong mortgage-banking revenues.

Locally, a solid day of gains can be expected, with the ASX 200 called to unwind 60 points or 1.3% higher at 4667. Based on US sector leads, gains should be broad based with the strongest gains expected in the materials, financials, energy and industrial sectors.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9714 0.0127 1.32%
ASX (cash) 4667 60 1.29%
US DOW (cash) 10920 139 1.29%
US S&P (cash) 1158.9 19 1.64%
UK FTSE (cash) 5647 71 1.26%
German DAX (cash) 6244 95 1.54%
Japan 225 (cash) 9590 75 0.79%
Rio Tinto Plc (London) 37.92 0.95 2.57%
BHP Billiton Plc (London) 20.75 0.48 2.37%
BHP Billiton Ltd. ADR (US) (AUD) 40.25 0.75 1.90%
US Light Crude Oil (Nov) 82.48 0.95 1.17%
Gold (spot) 1340.1 22.3 1.70%
Aluminium (London) 2378 33 1.41%
Copper (London) 8195 154 1.92%
Nickel (London) 24750 865 3.62%
Zinc (London) 2308 88 3.96%
RBA Cash Rate to be raised by 25bp (Nov) (%) 65.00 0 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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