IG Markets - Morning thoughts and opening prices
In US trade, markets retreated as the euphoria from US Fed Chairman Ben Bernanke’s comments waned. Investors also
digested benign US home prices and consumer confidence data. Risk appetite fell, which saw the US dollar gain ground
against most of the majors, while equities and commodities slipped.
Among the major averages, the Dow Jones Industrial Average was down 0.3% at 13198. The S was 0.3% lower at 1413 and the NASDAQ shed 0.1% to finish at 3120.
The Nikkei was the highlight of trade yesterday after it erased losses from last year’s earthquake. Japan’s index has
been well supported by a weaker yen over the past few months and has outperformed the region. However, today we are
calling the Nikkei down 1.2%, with the vast majority of that loss coming from companies going ex-dividend today. Over
200 Japanese stocks are going ex-div today.
A stronger dollar broadly weighed on commodities with gold shedding around half a percent. BHP’s ADR is pointing to a
0.7% drop at the open. We are likely to see resources come under mild selling pressure at the open. A tough night for
financials in the US could also translate to falls in the local financial stocks.
Ahead of the open, we are calling the Aussie market down 0.3% at 4290. We are likely to see regional markets maintain
tight ranges today, as investors digest the mixed leads from this week’s trading and wait for the next catalyst.
Locally, there is nothing major on the economic front to look out for. AUD/USD slipped to 1.04526 this morning from a
high of around 1.056 yesterday. This might support some of the currency sensitive stocks and help to limit downside
today.
Market Price at 7:30am AEST Change Since Australian Market Close Percentage Change AUD/USD 1.0464 -0.0053 -0.50% ASX (cash) 4290 -11 -0.26% US DOW (cash) 13193 -75 -0.57% US S (cash) 1411.0 -9.6 -0.68% UK FTSE (cash) 5850.0 -66 -1.12% German DAX (cash) 7059.0 -77 -1.08% Japan 225 (cash) 10090 -118 -1.16% Rio Tinto Plc (London) 33.87 0.22 0.65% BHP Billiton Plc (London) 19.26 -0.02 -0.10% BHP Billiton Ltd. ADR (US) (AUD) 34.18 -0.25 -0.73% US Light Crude Oil (May) 106.80 0.00 0.00% Gold (spot) 1680.5 -7.5 -0.44% Aluminium (London) 2196.00 9 0.41% Copper (London) 8535.00 -3 -0.04% Nickel (London) 17780.00 -518 -2.83% Zinc (London) 2035.00 15 0.74% RBA Cash Rate to be decreased by 25bp (Apr) (%) 23.00 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.
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