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IG Markets – Morning Prices 13 October 2010

IG Markets – Morning Prices

13 October 2010

In overnight action on Wall Street, US stocks shrugged off early falls to finish the session higher following the release of the Federal Reserve minutes that indicated the Fed were close to stimulating the economy further “before long”.

The technology heavy NASDAQ was the best performer, adding 0.7%. Elsewhere, the broad-based S&P 500 rose 0.4% while the Dow Jones Industrial Average rose 0.1%.

Looking ahead to the local session, the ASX 200 is forecast to bounce from yesterday’s losses. It’s called to open 0.9% firmer at 4659 following the stronger overnight leads from the US.

While most US sectors finished the session higher, the financials were the standout, rising 1.1%. We’re likely to see good buying support flow through to our banks today after the likes of Bank of America and JPMorgan rallied strongly ahead of JP Morgan’s results tomorrow.

Elsewhere, the materials and consumer staples sectors added 0.3% while the discretionary names were up 0.2%. In terms of materials stocks, base metal leads from London were mostly higher while in normal London trade, Rio Tinto and BHP Billiton lost 0.8% and 1% respectively. BHP Billiton’s ADR is calling the locally listed stock 0.1% weaker on the open.

In summary, it looks like the local session will open broadly firmer following the positive price action on Wall Street. There’s likely to be more focus on Asian trade today as earmarked to release Trade balance data, as well as possibly new loans and money supply figures.

Looking at foreign exchange markets, the AUDUSD rebounded from yesterday’s falls on relief buying. This was spurred by the FOMC meeting minutes which contained a more aggressive policy stance in relation to upcoming quantitative easing. With the ASX 200 and AUDUSD showing such a strong correlation recently, overnight strength in the AUDUSD supports the call for a higher equity market open. In terms of Asian session trade, numbers out of China will likely have the most impact on the Aussie dollar.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9857 0.0074 0.75%
ASX (cash) 4659 41 0.88%
US DOW (cash) 11029 74 0.68%
US S&P (cash) 1170.4 12 1.07%
UK FTSE (cash) 5691 43 0.76%
German DAX (cash) 6331 54 0.86%
Japan 225 (cash) 9446 41 0.44%
Rio Tinto Plc (London) 38.62 -0.31 -0.78%
BHP Billiton Plc (London) 21.28 -0.22 -1.00%
BHP Billiton Ltd. ADR (US) (AUD) 40.70 -0.04 -0.11%
US Light Crude Oil (Nov) 81.68 0.07 0.09%
Gold (spot) 1350.4 1.4 0.11%
Aluminium (London) 2429 41 1.72%
Copper (London) 8334 76 0.92%
Nickel (London) 24109 -41 -0.17%
Zinc (London) 2380 54 2.32%
RBA Cash Rate to be raised by 25bp (Nov) (%) 43.00 -10 -10.00%

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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