IG Markets Morning Prices

Good morning,

In the US overnight, stocks finished the session firmer, although off their highs after bond yields rose after the Federal Reserve reaffirmed its commitment to a US$600 billion stimulus package, saying the recovery was not strong enough to see a meaningful improvement in the unemployment situation.

The Dow Jones Industrial Average was the top performer, adding 0.4% while both the NASDAQ and S&P 500 could only manage gains of 0.1% respectively.

Locally, the ASX 200 is called to open the session 0.2% higher at 4778 following the modestly firmer leads from Wall Street.

There wasn’t a lot in the way of sector leadership that will affect Australian trade, although the healthcare sector was the standout performer, rising 1%.

In terms of the big sectors locally, the materials space is likely to be flat to lower after its US peer finished flat on the session and London leads were mixed at best. On the London Metals Exchange, base metals were mostly higher apart from a modest fall in zinc prices. Elsewhere, Rio Tinto and BHP Billiton fell 0.9% and 0.2% in normal London trade. Unsurprisingly, BHP’s ADR is calling the locally listed stock 0.4% weaker on the open at $45.47.

Elsewhere, the financial sector is likely to be a drag too after it was the biggest decliner in US trade, falling 0.9%. Following recent strength, the big banking names saw selling pressure as the likes of Bank of America, JP Morgan, Citigroup and Wells Fargo were all down more than 1.1%.

On the upside, industrial and consumer staples names could be well supported after US industrials and consumer staples peers had strong sessions, both rising 0.4%.

In summary, it looks like we’re set for another relatively lacklustre trading session in terms of volumes. Westpac Consumer Sentiment at 10.30am is the only notable economic release, and even that is unlikely to have any effect on price action. With our two biggest sectors looking flat at best, it’s hard to see what will provide gains today. Don’t be surprising if we’re trading modestly lower by mid morning.

In the currency market, both the AUD and EUR continued to push higher despite the US dollar remaining relatively stable. The AUDUSD traded back above parity overnight, hitting a high of 10028 while the EURUSD touched 1.3498 before retreating sharply to be around the 1.3378 level.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9990 0.0039 0.40%
ASX (cash) 4778 11 0.23%
US DOW (cash) 11483 65 0.57%
US S&P (cash) 1241.9 2 0.15%
UK FTSE (cash) 5883 29 0.49%
German DAX (cash) 7027 7 0.09%
Japan 225 (cash) 10338 40 0.39%
Rio Tinto Plc (London) 44.40 -0.39 -0.87%
BHP Billiton Plc (London) 25.20 -0.04 -0.16%
BHP Billiton Ltd. ADR (US) (AUD) 45.47 -0.18 -0.40%
US Light Crude Oil (Jan) 88.34 0.01 0.01%
Gold (spot) 1396.6 -5.7 -0.41%
Aluminium (London) 2368 23 0.98%
Copper (London) 9240 46 0.50%
Nickel (London) 24625 15 0.06%
Zinc (London) 2328 -9 -0.39%
RBA Cash Rate to be raised by 25bp (Feb) (%) 10.00 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.

Please contact IG Markets if you require market commentary or the latest dealing price.

ENDS

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