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IG Markets - Morning thoughts and opening prices
Good morning,
In US trade, markets retreated after the Fed minutes revealed the FOMC does not see the need for further easing unless economic expansion falters. This saw risk assets struggle, with commodities, risk currencies and equities falling, while the US dollar strengthened.
Among the major averages, the Dow Jones Industrial Average was down 0.5% at 13200. The S&P was 0.4% lower at 1413, while the NASDAQ shed 0.2% to finish at 3114.
Commodity markets corrected modestly lower through the European and early US sessions, and losses accelerated following the Fed Minutes when the US dollar made a strong advance. Gold was hit hardest, with the precious metal slumping around 2%. As a result, we expect gold miners to underperform their mining peers today. BHP’s ADR is pointing to a 1.3% drop at the open. The Aussie dollar continues to struggle, as AUD/USD slid from a high of 1.0466 to a low of 1.03011 this morning.
Ahead of the open, we are calling the Aussie market down
0.5% at 4316. This sees it open in the key support zone
which was resistance for most of this year. We could see
some investors buying the dips here. Investors will also be
encouraged by the fact that US markets rallied off their
lows into the close of the session. We could see some of
this positive momentum filter through to the local market
and help limit the downside. On the economic front, we have
the trade balance figures due out at 11.30am to look out
for.
| Market | Price at 6:30am AEST | Change Since Australian Market Close | Percentage Change |
| AUD/USD | 1.0327 | -0.0077 | -0.74% |
| ASX (cash) | 4316 | -21 | -0.48% |
| US DOW (cash) | 13198 | -61 | -0.46% |
| US S&P (cash) | 1413.0 | -6.0 | -0.42% |
| UK FTSE (cash) | 5832.0 | -54 | -0.92% |
| German DAX (cash) | 6957.0 | -83 | -1.18% |
| Japan 225 (cash) | 10049 | -1 | -0.01% |
| Rio Tinto Plc (London) | 35.51 | -0.05 | -0.14% |
| BHP Billiton Plc (London) | 19.35 | -0.30 | -1.53% |
| BHP Billiton Ltd. ADR (US) (AUD) | 34.74 | -0.44 | -1.25% |
| US Light Crude Oil (May) | 104.11 | -0.79 | -0.75% |
| Gold (spot) | 1647.0 | -32.0 | -1.91% |
| Aluminium (London) | 2125.00 | -5 | -0.23% |
| Copper (London) | 8615.00 | -26 | -0.30% |
| Nickel (London) | 18450.00 | 225 | 1.23% |
| Zinc (London) | 2022.00 | 15 | 0.75% |
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.
Kind regards,
Stan Shamu
Market Strategist
IG
Markets
www.igmarkets.com.au
ENDS
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