Australian Stock Market Leads - 02/14/2012
The Australian stock market is seen heading for a slow but steady start on Tuesday with the positive global markets performance extending limited gains on commodities and other risk-related assets.
Analysts say in spite the positive reaction of international markets to the bailout plan approved by the Greek parliament, the scepticism still lingers on investors as to how the government authorities of Greece will pursue needed fiscal reforms and efficiency in the medium to the long term.
IG Markets analyst Stan Shamu points out a comment by Greek leader Antonis Samaras, the leader of the New Democracy Party in a Wall Street Journal report suggesting that the measures agreed to in the parliament vote on Monday should be renegotiated after the elections.
IG Markets calls on the Aussie market to start six points lower at 4279. Mr Shamu say that "it is unlikely that risk assets and risk currencies will break significantly higher ahead of the EU finance minister meeting on Wednesday, when the fate of the Greek second bailout will hopefully be decided once and for all."
Ric Spooner, chief market analyst with CMC Markets perceives the market to hold steady and firm on today's trading.
"In technical terms, the Australian market is becoming wedged between the resistance of the 200 day moving average, currently around 4310 and trend line support around 4165. The direction of the break out of this zone may provide insight into the market's next significant move," Mr Spooner adds.
Possible Market Movers
The reporting calendar is a bit light, with Paladin and Western Areas being some of the few notable companies reporting.
Private hospital operator Ramsay Health care is due to report today. This stock, which has until recently been somewhat of a market darling amongst defensive stocks is anticipated to report earnings consistent with guidance for 10 -12% growth on the back of solid Australian hospital admissions. However, the likelihood that the Australian Parliament would this week pass legislation means testing the private health insurance rebate has increased the risk premium on this stock. Analysts are uncertain about the likely impact of this decision on hospital admissions and this may introduce an element of uncertainty about future earnings growth for some time.
On the economic front, we are expecting some comments from RBA Assistant Governor Mr Debelle this morning. We also have NAB business confidence at 11.30am (AEDST) today.
Market | Price at 8:30am AEST | Change Since Australian Market Close | Percentage Change |
AUD/USD | 1.0736 | -0.0005 | -0.05% |
ASX (cash) | 4279 | -6 | -0.14% |
US DOW (cash) | 12871 | 16 | 0.12% |
US S&P (cash) | 1353.0 | 13 | 0.97% |
UK FTSE (cash) | 5916 | 33 | 0.56% |
German DAX (cash) | 6754 | 15 | 0.22% |
Japan 225 (cash) | 9036 | 37 | 0.41% |
Rio Tinto Plc (London) | 38.46 | 0.74 | 1.96% |
BHP Billiton Plc (London) | 20.83 | 0.25 | 1.21% |
BHP Billiton Ltd. ADR (US) (AUD) | 36.52 | -0.14 | -0.38% |
US Light Crude Oil (Mar) | 100.60 | 1.08 | 1.09% |
Gold (spot) | 1722.0 | -6 | -0.35% |
Aluminium (London) | 2210.00 | -34 | -1.52% |
Copper (London) | 8425.00 | -56 | -0.66% |
Nickel (London) | 20555.00 | -150 | -0.72% |
Zinc (London) | 2075.00 | -3 | -0.14% |
RBA Cash Rate to be decreased by 25bp (Mar) (%) | 58.00 | 0 | 0.00% |
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