IG Markets Morning Prices

Good morning,

In the US overnight, stocks finished at new record highs as the Federal Reserve reported improving economic conditions across the country and Portugal’s bond auction went well, with yields declining. Upbeat earnings outlooks for the banks also helped to lift market sentiment.

The broad-based S&P 500 was the top performer, rising 0.9%. The NASDAQ and Dow Jones Industrial Average added 0.8% and 0.9% respectively.

Locally, the ASX 200 is called to open the session 0.6% higher at 4755, with the index likely to take its first step into positive territory for the year. Gains should be pretty broad-based after all sectors in the US finished firmly in the black.

We should see some support for financial names, especially after yesterday’s underperformance after the US sector added 1.7% to be the best performer. US financials were boosted by a number of positive earnings outlooks for banks from brokers while a positive comment from JP Morgan CEO Jamie Dimon said the bank is ready to pay between a 0.75c and $1.00 dividend once the Federal Reserve gives approval. JP Morgan kicks off the bank reports on Friday evening.

The US energy sector had another strong performance, adding 1.4% and should provide a boost to the local space. Crude Oil futures closed at a 27-month high after US crude inventory levels fell more than expected and the Trans-Alaska Oil Pipeline, which had been shutdown was allowed to begin limited operations.

The local materials sector is likely to be well bid today after US names advanced 1%, with commodity prices rising across the board. On the London Metals Exchange, base metal prices were all firmer, with Nickel the standout, rising 4%. In normal London equities trade, Rio Tinto and BHP Billiton added 2.2% and 1.2% respectively while BHP Billiton’s ADR is calling the locally listed entity 1.2% higher on the open at $45.72.

Elsewhere, we should see good support among industrial names too after the US sector advanced 0.8%. In summary, it looks like we’re set for broad-based gains today as sentiment across the globe was boosted overnight. The big news today will be the 11.30am release of the December jobs numbers, with the market expecting 25,000 jobs to have been created and the unemployment rate to fall to 5.1% from 5.2%.

In currency markets, the AUDUSD had a good night as it benefitted from the improving sentiment out of Europe. It added more than a cent and is now trading at 0.9958 from lows of 0.9803. The Euro also surged, boosted by the positive Portuguese bond auction. Its currently trading around the 1.3129 level.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9954 0.0107 1.09%
ASX (cash) 4755 30 0.64%
US DOW (cash) 11751 77 0.66%
US S&P (cash) 1285.2 11 0.82%
UK FTSE (cash) 6047 41 0.68%
German DAX (cash) 7078 127 1.83%
Japan 225 (cash) 10588 65 0.62%
Rio Tinto Plc (London) 45.43 0.96 2.17%
BHP Billiton Plc (London) 25.50 0.31 1.23%
BHP Billiton Ltd. ADR (US) (AUD) 45.72 0.52 1.16%
US Light Crude Oil (Feb) 91.77 0.53 0.58%
Gold (spot) 1387.5 2.62 0.19%
Aluminium (London) 2504.00 4 0.16%
Copper (London) 9685.00 106 1.11%
Nickel (London) 25900.00 1001 4.02%
Zinc (London) 2465.00 47 1.94%
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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