IG Markets - morning thoughts and opening prices

IG Markets - morning thoughts and opening prices

In US trade, markets were cautiously risk on after it was reported that Greek political leaders clinched a deal on reforms. This should lead to a new round of international aid and put an end to the latest phase of the Greek drama. However, it seems some are still sceptical over whether or not Greece sticks to its promises. US jobless claims came in better than expected and also helped to lift sentiment. The BOE and ECB left rates unchanged as expected.

Among the major averages, the Dow Jones Industrial Average was up seven points to close at 12890. The S&P climbed 0.2% to close at 1352 and the NASDAQ added 0.4% to close at 2927.

Commodity and debt markets were the best performers on the day, and while currencies and equities displayed ‘risk-on’ outcomes, it was in an understated fashion. As a result, our resource-heavy index might be in for a slight recovery this morning. Rio Tinto will be a talking point, after its results missed analysts’ expectations with a bigger-than-expected write-down to its aluminium business. RIO shares lost 1.5% in the UK and are also likely to struggle in local trade. BHP’s ADR is pointing to a 0.7% drop at the open.

Ahead of the open we are calling the Aussie market up eight points at 4291. Once again, the 4300 level will be in focus after the market battled at that level all week. We expect to see gold stocks struggle after the precious metal lost significant ground following the Greek deal announcement. The RBA releases its monetary policy statement this morning, which will probably just reiterate some of the comments released on Tuesday after the interest rate decision. On the reporting end, Newcrest Mining has released its first half results with no major surprises after recent updates.

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.

www.igmarkets.com.au

ENDS

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