IG Markets - Morning Thoughts

IG Markets - Morning Thoughts

Overnight European and US equities were broadly lower as investors continued to wait the for outcome of the EU summit, as well as digest a GDP report that confirmed the US is still growing, but at a very sluggish pace. The real story of the session however, was the final hour of trade. The major US indices had been significantly weaker, (the Dow was down 176 points at its lows), but enjoyed a stellar rebound late in the day on news that Angela Merkel has cancelled her scheduled press conference. This fuelled hopes (perhaps falsely) that EU leaders were working towards some sort of solution to tackle the European financial crisis. It really is amazing what can spark a market rally!

Given the late resurgence on Wall Street, today we head into the final day of the financial year looking at relatively flat open, with ASX 200 called to unwind approximately two points, or 0.04% higher at 4047. That said, today is likely to be a bit of a non-event, with investors most likely looking to delay investment decisions until next week and the beginning of a new financial year which also gives them the benefit of being able to assess any rhetoric that comes from the continuing EU summit.

One of our themes of the week has been the performance of the base metals complex and how that is a true measure of market sentiment. Metals were all weaker again last night, confirming there are still too many doubts over Europe’s viability, the health of the US economy and the growth trajectory of China to warrant a turnaround in confidence levels.

Market Price at 6:30am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0042 -0.0078 -0.78%
ASX (cash) 4047 2 0.04%
US DOW (cash) 12598 -33 -0.26%
US S&P (cash) 1325.7 -4.4 -0.33%
UK FTSE (cash) 5523 -13 -0.23%
German DAX (cash) 6181 -59 -0.94%
Japan 225 (cash) 8819 -55 -0.62%
Rio Tinto Plc (London) 29.13 0.02 0.07%
BHP Billiton Plc (London) 17.48 0.11 0.63%
BHP Billiton Ltd. ADR (US) (AUD) 30.87 0.14 0.45%
US Light Crude Oil (August) 78.40 -2.16 -2.68%
Gold (spot) 1555.0 -21.7 -1.38%
Aluminium (London) 1843.25 -39 -2.06%
Copper (London) 7389.5 -42 -0.56%
Nickel (London) 16233.5 -89 -0.55%
Zinc (London) 1769 -11 -0.60%

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

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