The Australian stock market is seen receiving a little shove
from the negative leads over volatile overnight sessions in the
US and European stock markets. The ASX is seen performing
modestly on Friday.
UPDATE From IG MArkets Analyst Ben Potter:
"In the US overnight, stocks staged a huge rally off the lows
after news broke that the EU and IMF had approved a five year
Greek austerity plan which included additional rounds of tax
hikes and spending cuts. European and US stocks, as well as the
EUR/USD were under huge amounts of selling pressure early.
"The technology-laden NASDAQ was the standout performer,
adding 0.7%. Elsewhere, the S&P 500 and Down Jones Industrial
Average finished 0.3% and 0.5% lower respectively, with the
S&P 500 down 1.8% at one stage. The S&P 500 bounced off
both the 200 moving average as well as the long-term uptrend,
both very important technical levels.
"Locally, the ASX 200 is called to open the session unchanged
at 4499 following the late session surge on Wall Street. In terms
of sectors, the energy, financial and consumer staples were the
hardest, losing 1.1%, 1% and 0.9% respectively.
"Energy names locally are likely to be hit after the US
Department of Energy released 30 million barrels from the
Strategic Petroleum Reserve which saw crude oil futures slump
2.5% to US$91.80/bbl since our 4.30pm close. ExxonMobil, Chevron
and ConocoPhillips were all down more than 0.4%.
"Financials were under pressure too as the likes of Bank of
America, JPMorgan, Wells Fargo and Citigroup were all down more
than 0.3%.
The materials sector finished relatively unchanged and could
have some upside risk in Australian trade despite softer leads.
Base metals on the LME were mixed while in London, Rio and BHP
were thumped to the tune of 2.5% and 3.2%. However, following the
late rally on Wall Street BHP's ADR is calling the local stock to
open only 0.1% softer at $41.99.
Precious metal stocks could come under pressure, however after
gold futures fell sharply, down 1.7% to US$1521.10/oz on the back
of the higher US dollar.
In summary, it looks like a relatively flat open for the local
market following a hugely volatile overnight session. It's hard
to tell how we will trade after the open; there could be some
upside risk following the overnight news or it could be a classic
case of Friday afternoon profit taking as traders look to take
any profits they can get in this volatile market.
In currency markets, the EUR/USD staged a huge intraday swing
to the upside; it slumped to lows of 1.4126 in the European
session before reversing sharply and closing at 1.4254. It's
currently at 1.4272.
The AUD/USD largely tracked the euro, hitting early lows of
1.0453 before reversing course and closing the session at
1.0522.
Making news today
According to the Sydney Morning Herald, the Reserve Bank of
Australia (
RBA
) assistant governor (economic) Philip Lowe was scheduled to
speak at a business lunch in Adelaide.
The Australian Office of Financial Management was due to issue
$750 million worth of April 2015 bonds.
In companies news, Westpac Group group executive - Technology,
Bob McKinnon, was scheduled to speak at a business lunch in
Sydney.
|
Market
|
Price at 6:30am AEST
|
Change Since Australian Market Close
|
Percentage Change
|
|
AUD/USD
|
1.0524
|
-0.0024
|
-0.23%
|
|
ASX (cash)
|
4499
|
-1
|
-0.03%
|
|
US DOW (cash)
|
12049
|
-14
|
-0.12%
|
|
US S&P (cash)
|
1282.8
|
2
|
0.17%
|
|
UK FTSE (cash)
|
5719
|
-17
|
-0.30%
|
|
German DAX (cash)
|
7196
|
-39
|
-0.53%
|
|
Japan 225 (cash)
|
9586
|
-6
|
-0.07%
|
|
Rio Tinto Plc (London)
|
41.57
|
-1.06
|
-2.48%
|
|
BHP Billiton Plc (London)
|
22.44
|
-0.73
|
-3.17%
|
|
BHP Billiton Ltd. ADR (US) (AUD)
|
41.99
|
-0.05
|
-0.11%
|
|
US Light Crude Oil (Aug)
|
91.80
|
-2.36
|
-2.51%
|
|
Gold (spot)
|
1521.1
|
-25.87
|
-1.67%
|
|
Aluminium (London)
|
2510.00
|
-22
|
-0.87%
|
|
Copper (London)
|
8975.00
|
-8
|
-0.09%
|
|
Nickel (London)
|
22125.00
|
60
|
0.27%
|
|
Zinc (London)
|
2246.00
|
18
|
0.81%
|
|
RBA Cash Rate to be raised by 25bp (Jul) (%)
|
11.00
|
4
|
57.14%
|
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.
Please contact IG Markets if you require market commentary or
the latest dealing price.