IG Markets Morning Prices

Good morning,

In the US overnight, the major indices finished the session mixed, but off session lows as renewed fears of European sovereign debt contagion emerged and as investors awaited Alcoa’s Q4 2010 earnings to kick off the latest round of earnings.

The tech-heavy NASDAQ was the best performer, rising 0.2%. On the downside, the broad-based S&P 500 fell 0.1% while the Dow Jones Industrial Average retreated 0.3%.

Domestically, the ASX 200 is called to open this Tuesday 0.3% weaker at 4699, just below the psychologically important 4700 round figure.

It was a fairly quiet overnight session in terms of sector leads with all the major finishing modestly higher or lower. On the upside, there could be moderate buying interest among the material and industrial names after they were the better performers, both adding 0.2%.

Despite weaker base metal leads from the London Metals Exchange and falls of 0.8% and 0.7% respectively for Rio Tinto and BHP Billiton in London trade, BHP Billiton’s ADR is surprisingly calling the locally listed name 0.2% firmer at $44.54. Gold names should be slightly firmer too after the precious metal futures added 0.1% to be trading around the US$1374/oz level. Also, Alcoa’s slightly better-than-expected after hours result and bullish outlook statement could improve sentiment among the miners.

On the downside, it looks like there could be some weakness among financial and energy names despite Crude Oil futures rising 0.5% to US$89.48 per barrel since our 4.30pm close. Coal names will once again be in the spotlight as the flooding disaster in Queensland intensified overnight.

This is likely to be one of the biggest drivers today as further uncertainty hangs over the market. Those stocks like insurers and coal names are likely to feel the brunt of it but general uncertainty is likely to make gains hard to come by. In economic data, the latest readings on the ANZ jobs ads and trade balance are due at 11.30am.

In currency markets, the above data is likely to have little impact on today’s trade. Overnight, a little bit of weakness in the US dollar index saw both the AUD and Euro claw back some points. The AUDUSD rallied off session lows of 0.9881 and is now trading at 0.9956 while the Euro recovered to be trading at 1.2945.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9965 0.0008 0.08%
ASX (cash) 4699 -14 -0.29%
US DOW (cash) 11648 -31 -0.26%
US S&P (cash) 1270.9 -1 -0.08%
UK FTSE (cash) 5986 -4 -0.07%
German DAX (cash) 6874 -76 -1.09%
Japan 225 (cash) 10439 -31 -0.29%
Rio Tinto Plc (London) 43.89 -0.37 -0.84%
BHP Billiton Plc (London) 24.74 -0.18 -0.72%
BHP Billiton Ltd. ADR (US) (AUD) 44.54 0.09 0.21%
US Light Crude Oil (Feb) 89.48 0.47 0.53%
Gold (spot) 1374.1 1.10 0.08%
Aluminium (London) 2491.00 -15 -0.60%
Copper (London) 9335.00 -151 -1.59%
Nickel (London) 23890.00 -300 -1.24%
Zinc (London) 2367.00 -53 -2.19%
RBA Cash Rate to be raised by 25bp (Feb) (%) 5.00 0.0 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.

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

ENDS

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