IG Markets - morning thoughts and opening prices

IG Markets - morning thoughts and opening prices

In US trade, markets advanced with the tech stocks leading the way. Apple shares were the highlight of the session, topping $600 after it announced plans for a dividend and a buyback. Data showing that US home-builder sentiment remained at its highest level in nearly five years also helped to lift sentiment.

Among the major averages, the Dow Jones Industrial Average was up 0.1% at 13239. The S&P was 0.4% higher at 1410 and the NASDAQ surged 0.8% to finish at 3078. While US markets printed fresh four-year highs, European markets retreated from eight-month highs.

Overall, there was mild improvement in risk appetite, with the US dollar weakening against most majors. This saw commodities gain ground, with oil rising 1%. BHP’s ADR is pointing to a 0.7% advance at the open to around $35.59 after having enjoyed a strong bounce off key support at $34 recently. The stock has been ranging between $34 and $40 for the past few months. We expect to see other mining names rise mildly at the open following the improvement in risk appetite.

Ahead of the open, we are calling the Aussie market up 0.2% at 4301. Once again, this sees us open in the key 4300 resistance region which has held back the bulls on several occasions. Yesterday was the eighteenth time in seven months that the Aussie market went through the 4300 level. The high of 4309 from yesterday will be a key level to look out for today. On the economic front we have monetary policy meeting minutes and RBA Assistant Governor Malcolm Edey speaking. Investors will be looking for any hints on the RBA’s next move with interest rates. David Jones will be in focus today, after announcing a board meeting to assess its strategic plan.

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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