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

Scot finds love in New Zealand thanks to poster - UK-Kiwi love story

4 Mar 2015 News
They had a sleepover - but was it because of a hangover? Picton's star-crossed lovers, Kiwi William Scott Chalmers and Scottish... more

Consultation on proposed gambling fee changes

4 Mar 2015 News
New Zealand Government Consultation on proposed gambling fee changes The gambling sector and the public are being consulted on... more

Business

NZ dollar little changed after Australian GDP data

4 Mar 2015 Business News
Article - BusinessDesk   NZ dollar little changed as Australian GDP shows healthy household consumption By Paul McBeth March 4 ... more

MARKET CLOSE: NZ shares fall; Meridian, MRP, DNZ drop

4 Mar 2015 Business News
Article - BusinessDesk   MARKET CLOSE: NZ shares fall; Meridian, MRP, DNZ drop on weakening yield demand By Suze Metherell March... more

Living

Supports Announced for Stephen Malkmus & the Jicks’

4 Mar 2015 Lifestyle
The Maple Supports Announced for Stephen Malkmus & the Jicks’ New Zealand Tour New Zealand are lucky to play host to ... more

National Release of Award-Winning Film, Pulp

4 Mar 2015 Lifestyle
Nga Taonga Sound and Vision   Florian Habicht (left) and Jarvis Cocker promoting Pulp: A Film... more

Property

Auckland houses prices fall in Feb as volume, listings rise

4 Mar 2015 Property
Article - BusinessDesk   Auckland houses prices fall in February as volume, listings pick up By Suze Metherell March 4 ... more

NZ residential building activity rises 4.3% in 4th-qtr

4 Mar 2015 Property
Article - BusinessDesk   NZ residential building activity rises 4.3% in 4th-qtr, driven by Canterbury March 4 (BusinessDesk) -... more

Migration

PM plays down claim war criminals are living in NZ

2 Mar 2015 Migration
Prime Minister John Key says he is not aware of any suspected war criminals from the former Yugoslavia in New Zealand. The claim that... more

NZ migration rose to record in 2014

30 Jan 2015 Migration By Tina Morrison
  NZ migration surged to record in 2014, helped by robust economy Jan. 30 (BusinessDesk) - New Zealand migration surged to a... more

Travel

Air New Zealand promises cheaper deals

2 Mar 2015 Travel & Tourism
Air New Zealand is promising more discounted fares as it adds hundreds of thousands of extra seats to its network where travel agents... more

Oz holiday boom as kiwi dollar surges

2 Mar 2015 Travel & Tourism
Travel across the Tasman is forecast to increase this year as the Australian dollar continues its recent trend towards parity with the... more

Sport

Golden Shears set to start in Masterton

4 Mar 2015 Sport
Shearing Sports New Zealand Golden Shears set to start in Masterton Hundreds of competitors are descending on Masterton for the 55th ... more

NZ’s Original Mtn Bike Race Celebrates Three Decades!

4 Mar 2015 Sport
Karapoti Classic NZ’s Original Mtn Bike Race Celebrates Three Decades! Thirty years ago mountain biking was a new fringe... more

Columns

Gordon Campbell on the Privy Council’s Teina Pora decision

4 Mar 2015 Opinion
Column - Gordon Campbell   Gordon Campbell on the Privy Council’s Teina Pora decision and Iron & Wine The quashing of... more

Gordon Campbell on the recent smackdown over Greece

2 Mar 2015 Opinion
There had been a fortnight of fevered buildup. Yet here we are in the aftermath of the February 28 showdown between the new Syriza... more

Kiwi Success

New Consul-General to Sydney

20 Feb 2015 Appointments
Foreign Minister Murray McCully has named diplomat Billie Moore as New Zealand’s new Consul-General in Sydney. "Ms Moore will... more

New Ambassador to Ethiopia and the AU

20 Feb 2015 Appointments
New Zealand Government New Ambassador to Ethiopia and the AU Foreign Minister Murray McCully has named diplomat Bruce Shepherd as ... more

Recruitment

Luring talent to job expos a win-win

2 Mar 2015 Recruitment
Bringing employers face-to-face with future workforce creates positive labour market outcomes, writes Mark Gillard, director of the... more

Living wage estimate rises to $19.25/hour

2 Mar 2015 Recruitment
Campaigners for a "living wage" say it now costs $19.25 an hour for a mother, father and two children to "live with dignity" in New... more