IG Markets – Morning Prices 14 October 2010

IG Markets – Morning Prices 14 October 2010

IG Markets – Morning Prices

14 October 2010

In the US overnight, stocks pulled back slightly in the last half hour of trade to finish off session highs as the US dollar continued its downward spiral, boosting gold and risk currencies. A series of stronger-than-expected corporate results, led by Intel, JP Morgan and CSX also helped boost confidence in the economic recovery.

The technology laden NASDAQ was the top performer, adding 1% while the Dow Jones Industrial Average and S&P 500 both rose 0.7%.

Locally, the ASX 200 is called to open the session 0.9% firmer at 4660 following the strong overnight price action. We should see broad based gains across the local market after all US sectors finished in the black.

The bulk of the points are likely to come from the materials space after the US basic materials sector was one of the top performers, rising 1.6%. Base metal leads from the London Metals Exchange were mostly positive, although uninspiring. In normal London trade, Rio Tinto and BHP Billiton surged, jumping 4.6% and 4.2% respectively, with BHP Billiton’s ADR calling the local entity up 1.4% at the open.

The industrials sector was the other standout performer, rising 1.7%. Elsewhere, energy names should be well supported following a 1.2% gain on Wall Street. Since our 4.30pm close yesterday, Crude Oil rose 1.2% to US$83.20 per barrel. However, it wasn’t all good news with Chevron warning that its quarterly earnings could be lower than those of its second quarter.

Consumer discretionary and financials both ended the session modestly firmer.

In summary, it looks the Australian market is set for a positive open, with commodity based stocks set to add the bulk of the points. There is little in the way of economic news, although the MI Inflation Expectations may get a little attention at 11am. Also, keep any eye out for data out of China (New loans, M2 Money Supply & Foreign Direct Investment) that are forecast over the next day or so.

On the foreign exchange front, the AUDUSD had another strong session overnight, rising to a new-record high of 0.9936 as the USD continued to come under selling pressure on expectations of further quantitative easing measures.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9908 0.0037 0.37%
ASX (cash) 4660 40 0.86%
US DOW (cash) 11099 78 0.71%
US S&P (cash) 1178.2 9 0.74%
UK FTSE (cash) 5740 63 1.11%
German DAX (cash) 6429 107 1.70%
Japan 225 (cash) 9494 74 0.78%
Rio Tinto Plc (London) 40.38 1.76 4.56%
BHP Billiton Plc (London) 22.16 0.89 4.16%
BHP Billiton Ltd. ADR (US) (AUD) 41.38 0.56 1.38%
US Light Crude Oil (Nov) 83.20 0.96 1.17%
Gold (spot) 1372.1 15.5 1.14%
Aluminium (London) 2421 -13 -0.53%
Copper (London) 8400 30 0.36%
Nickel (London) 24375 50 0.21%
Zinc (London) 2400 3 0.13%
RBA Cash Rate to be raised by 25bp (Nov) (%) 36.00 -6 -6.00%

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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