Analysts are looking forward to Australia's Prime Minister
Julia Gillard's speech harping on the Reserve Bank to cut rates
to prop up the domestic economy. This may lower down the
pessimistic leads seen reflecting on Thursday's Australian
markets beginning with the IMF's disclosure that the European
debt burden will still weigh down on global markets.
According to IG Markets strategist Stan Shamu, "Prime Minister
Julia Gillard is reportedly preparing to make a speech that will
ramp up pressure on the RBA to cut rates. However, this is
unlikely to result in a shift in the RBA's stance, as it is
supposed to be an independent body."
Mr. Shamu reports the commodity/risk currencies struggled as
risk appetite waned. Oil dropped around 1.5% following a jump in
inventories, while gold and copper were around half a percent
weaker.
"However, we expect to see some follow-through buying in the
local resource names after recent production reports and broker
upgrades. BHP's ADR is pointing to a 0.2% gain at the open to
$35.18. We could see the energy sector underperform after oil
struggled in US trade. Telstra will be one to watch after it
released an investor update this morning confirming FY12 guidance
and dividend," he adds.
Local markets are up during the first hour, but is seen
skidding 0.1% at 4346 by mid-day.
On the local economic front, we have NAB quarterly business
confidence data due out today. However, this is not a big market
mover and focus is likely to remain on the big miners' production
reports, with Fortescue Metals coming to the fore today, Mr Shamu
notes.
Elsewhere in the Asia-Pacific region, Japan will report on its
trade balance figures and comments from BoJ Governor Shirakawa
due out, which will have an impact in regional trading.
MARKETS OVERNIGHT
In US trade, markets retreated from the previous day's gains,
as Spain's problems resurfaced following a spike in bad loans.
There was some caution ahead of today's Spanish bond auctions,
particularly in the wake of data showing that non-performing
loans as a proportion of total lending in Spain jumped in
February. Investors also reacted to some disappointing earnings
reports from Intel and
IBM.
Among the major averages, the Dow Jones Industrial Average was
down 0.6% at 13033. The S&P was 0.4% lower at 1385, while the
NASDAQ shed 0.4% to finish at 3031.
IG MARKETS CHART, 19 APRIL 2012
|
Market
|
Price at 6:30am AEST
|
Change Since Australian Market Close
|
Percentage Change
|
|
AUD/USD
|
1.0351
|
-0.0050
|
-0.48%
|
|
ASX (cash)
|
4346
|
-3
|
-0.07%
|
|
US DOW (cash)
|
13019
|
-90
|
-0.69%
|
|
US S&P (cash)
|
1384.0
|
-6
|
-0.43%
|
|
UK FTSE (cash)
|
5749.0
|
-19
|
-0.33%
|
|
German DAX (cash)
|
6719.0
|
-85
|
-1.25%
|
|
Japan 225 (cash)
|
9601
|
-66
|
-0.68%
|
|
Rio Tinto Plc (London)
|
35.40
|
0.22
|
0.63%
|
|
BHP Billiton Plc (London)
|
19.43
|
0.16
|
0.83%
|
|
BHP Billiton Ltd. ADR (US) (
AUD
)
|
35.18
|
0.08
|
0.23%
|
|
US Light Crude Oil (May)
|
102.72
|
-1.75
|
-1.68%
|
|
Gold (spot)
|
1642.0
|
-12
|
-0.70%
|
|
Aluminium (London)
|
2059.00
|
-18
|
-0.87%
|
|
Copper (London)
|
8050.00
|
0
|
0.00%
|
|
Nickel (London)
|
17650.00
|
-175
|
-0.98%
|
|
Zinc (London)
|
1992.00
|
0
|
0.00%
|
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
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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
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