It was a fairly flat session for risk assets amid limited data or headlines. The euro was perhaps the most significant
mover of the session, edging higher across the board. A successful Italian bond auction was one of the contributors to
the euro’s strength. Additionally, the pace of Greece’s economic meltdown was not quite as steep as the few economists
who try to forecast the data expected. EUR/USD pushed back beyond 1.23 to a high of 1.237, while AUD/USD momentarily
dipped below 1.05 before recovering to 1.052. With the stimulus optimism euphoria waning, it is difficult to see what
will support markets in the near term should China stay put.
Ahead of the open, we are calling the Aussie market up 0.2% at 4293. Despite all the mixed leads we have received over
the past few sessions, the local market still manages to get off to a positive start. With reporting season kicking into
gear, some of the stocks are being supported by investors chasing dividends. Rio Tinto will be the first of the majors
to go ex-dividend tomorrow. Telstra and Commonwealth Bank go ex-dividend on Monday and therefore Friday will be an
interesting session for these big names. On the economic front, today we have NAB business confidence and new motor
On a stock level, we expect a slightly firmer start for BHP Billiton, with its ADR pointing to a 0.1% rise to $32.92. On
the reporting calendar today we have National Bank (NAB) set to release its Q3 trading update. Other reports to look out
for will be from Ansell, Carsales and Domino’s Pizza. We are seeing some stocks being re-rated by the major brokers
following their earnings reports. JB Hi-fi has been downgraded to Underperform (from Neutral) by Credit Suisse. UGL
Limited has been downgraded by Macquarie and Nomura following its disappointing report yesterday.
MarketPrice at 6:30am AESTChange Since Australian Market ClosePercentage ChangeAUD/USD1.0518-0.0032 -0.30%ASX (cash)429310 0.2%US DOW (cash)131765 0.04%US S (cash)1406.74.7 0.33%UK FTSE (cash)5847-12 -0.20%German DAX (cash)6939-25 -0.36%Japan 225 (cash)88938 0.09%Rio Tinto Plc (London)32.03-0.07 -0.23%BHP Billiton Plc (London)19.80-0.13 -0.63%BHP Billiton Ltd. ADR (US) (AUD)32.920.03 0.09%US Light Crude Oil (September)92.79-0.39 -0.42%Gold (spot)1610.1-13.0 -0.80%Aluminium (London)1858-23-1.24%Copper (London)7401110.14%Nickel (London)15361-40-0.26%Zinc (London)1859241.30%
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