IG Markets - morning thoughts and opening prices   28 May 2012

Risk assets had a tough session on Friday, drifting lower through US trade. Sentiment remained fragile, with concerns over Spanish banks weighing. This vulnerability of sentiment was made even more evident by the EUR/USD’s move below 1.25 on Friday. S&P said late on Friday that it believes the country is entering a double-dip recession as it cut the ratings on five Spanish banks. Despite all the negative tape on Friday, the Aussie dollar held up fairly well and remained within the 0.97-0.98 trading range against the greenback. The pair actually popped above the 0.98 level this morning, printing a high of 0.98248, with risk fairly buoyant to start off the week. With bank holidays for France, Germany and the US today, Asia is left to fend for itself in terms of leads.

Based on Friday’s close, we were calling the market lower this morning but this has since changed following some developments from the weekend. Ahead of the open, we are calling the Aussie market up 0.3% at 4040 after risk currencies enjoyed a positive start to the week with the euro and Aussie gapping higher. US markets drifted lower through Friday’s session along with most risk assets. This reversal is mainly as a result of the latest polls suggesting Greek pro-bailout conservatives have regained the lead against the far-left Syriza Party. There are also reports that the EU is working on plans to set up a rescue fund for ailing banks and a six-point plan to aid growth. On the local economic front, RBA Governor Glen Stevens is speaking this morning, and his comments might have some bearing on monetary policy/Aussie dollar.

On a stock level, we expect a relatively flat start for BHP, with its ADR pointing to a 0.1% fall to $31.57. However, we could see some upside to this call as it doesn’t incorporate developments from this morning. Elsewhere in the mining space, Fortescue Metals has been upgraded to buy (from hold) by Deutsche Bank after the recent sell-off. This might help support the stock today. Atlas Iron will also be in focus after the company said its share price weakness has left it vulnerable to takeover bids, and the board said it is preparing for a rapid growth phase. Hastie Group has appointed voluntary administrators after some accounting irregularities in their Queensland division. An employee was found to have falsified company accounts and its lenders include ANZ, CBA, NAB and WBC.

Market Price at 6:30am AEST Change Since Australian Market Close Percentage Change
AUD/USD 0.9792 0.0045 0.47%
ASX (cash) 4040 11 0.3%
US DOW (cash) 12478 -91 -0.72%
US S&P (cash) 1319.1 -5.3 -0.40%
UK FTSE (cash) 5333 -18 -0.33%
German DAX (cash) 6313 11 0.18%
Japan 225 (cash) 8580.39 3 0.03%
Rio Tinto Plc (London) 27.95 -0.44 -1.54%
BHP Billiton Plc (London) 17.03 -0.15 -0.89%
BHP Billiton Ltd. ADR (US) (AUD) 31.57 -0.04 -0.12%
US Light Crude Oil (July) 90.72 0.08 0.08%
Gold (spot) 1574.1 19.8 1.28%
Aluminium (London) 2014 -4 -0.18%
Copper (London) 7639 29 0.38%
Nickel (London) 17050 -50 -0.29%
Zinc (London) 1908 22 1.17%

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

(IG Markets)

Add a comment

Bookmark and Share

News

Presbyterian Church to lead Waitangi Day dawn ceremony

29 Jan 2015 News
  Presbyterian Church to lead Waitangi Day dawn ceremony for first time For the first time in the history of the Presbyterian... more

Upwards NCEA trend continues

29 Jan 2015 News
New Zealand Government Upwards NCEA trend continues Education Minister Hekia Parata has welcomed the release of provisional results ... more

Business

NZ dollar drops after RBNZ abandons bias to raise rates

29 Jan 2015 Business News By Jonathan Underhill
Jan. 29 (BusinessDesk) - The New Zealand dollar dropped, touching a four-year low, after the Reserve Bank abandoned its bias for ... more

NZ venison, lamb ventures win $41 mln of funding under PGP

29 Jan 2015 Business News
Article - BusinessDesk   NZ venison, lamb ventures targeting wealthy consumers win $41 mln of funding By Fiona Rotherham Jan. 29... more

Living

Signing - Next amazing Exhibition at Academy Galleries

28 Jan 2015 Lifestyle
Academy Galleries Signing The New Zealand Academy of Fine Art’ latest exhibition is commemorating 175 years since the signing... more

‘Sunday’ Selected for Byron Bay International Film Festival

28 Jan 2015 Lifestyle
Sunday The Film Kiwi Romance ‘Sunday’ Selected for Byron Bay International Film Festival 2015 New Zealand film... more

Property

Americans the biggest buyers of NZ land since 2010: Linz

29 Jan 2015 Property
Article - BusinessDesk   Americans the biggest buyers of New Zealand land since 2010, Linz data shows By Fiona Rotherham Jan. 29... more

Housing affordability drops 14%, driven by Auckland prices

29 Jan 2015 Property
Article - BusinessDesk   Housing affordability drops 14%, driven by Auckland house price rises By Fiona Rotherham Jan. 29 ... more

Migration

Free new Kiwi workshops return for fresh season

23 Jan 2015 Migration
Newcomer settlement support agency Auckland Regional Migrant Services (ARMS) is kick-starting the New Year with the return of its ... more

Overstayer numbers at record low

22 Dec 2014 Migration
Immigration Minister Michael Woodhouse welcomes new figures showing New Zealand overstayer numbers are at the lowest since 2000. A... more

Travel

Fifteen New Zealand spots to visit in 2015

23 Jan 2015 NZ Tourism
Need some inspiration for the year ahead? Here are some brilliant things to do around the country. 1. Crankworx The world's... more

Holiday parks making most of sunshine

22 Jan 2015 NZ Tourism
Holiday parks are reaping the benefits of the great holiday weather, starting the new year with record-equalling confidence... more

Sport

Mannering caps landmark year at NZRL Awards

29 Jan 2015 Rugby League
NZRL Mannering caps landmark year at NZRL Awards NZ skipper Simon Mannering has captured NZ rugby league’s top honour for... more

Mojo Pulse 2015 Pre-season Games Announced

29 Jan 2015 Netball
Netball Central Zone Mojo Pulse 2015 Pre-season Games Announced 29 January 2015 With only 30 days till the start of the 2015 ANZ... more

Columns

Gordon Campbell on the Eleanor Catton rumpus

29 Jan 2015 Column
Column - Gordon Campbell   Gordon Campbell on the Eleanor Catton rumpus by Gordon Campbell If anyone was in doubt about the... more

Gordon Campbell on the Sabin case, and pressures on Greece and coyotes

28 Jan 2015 Opinion By Gordon Campbell
  Brain fades are one thing, but the brain freeze that seems to have beset the Prime Minister over the Mike Sabin affair is... more

Kiwi Success

Xero names US-based Douglas Jeffries as CFO

29 Jan 2015 Appointments By Tina Morrison
Xero names US-based Douglas Jeffries as CFO as it targets North American market By Tina Morrison Jan. 29 (BusinessDesk) - Xero, the... more

New Zealand scientist receives top award in China

16 Jan 2015 People
Science and Innovation Minister Steven Joyce has welcomed the news that Kiwi scientist Dr Phil Rolston has been awarded the Chinese ... more

Recruitment

Tainui's Mike Pohio resigns

23 Jan 2015 Recruitment
By Fiona Rotherham Jan. 23 (BusinessDesk) - Mike Pohio, chief executive of Tainui Group Holdings, has resigned after eight years at... more

Manufacturing activity rises to decade high in December

22 Jan 2015 Recruitment
By Suze Metherell Jan. 22 (BusinessDesk) - Activity in New Zealand's manufacturing sector rose last month to its highest level in a... more