Global Markets Overview - 10/31/2011
Global markets took a breather on Friday night, as investors consolidated after recent gains. US markets were relatively flat, while in Europe, markets were a touch weaker. There was a lot to take in after all the announcements out of Europe throughout the week. Despite Friday's subdued moves, global markets finished the week with huge gains.
Among the major averages, the Dow Jones Industrial Average added 0.2% to end at 12231. The S&P and the NASDAQ were both flat. Sentiment in the US was lifted by some encouraging consumer sentiment, personal spending and personal income data, which came in slightly ahead of expectations.
Many feel that the mild interest in the Italian debt auction on Friday showed that bond investors are still sceptical that the EU debt deal will actually calm the crisis. Despite this fact, it seems investors are satisfied that EU leaders will do all they can to avert a crisis and are prepared to work together, should the problems persist. This is likely to shore up sentiment in the near term.
Copper finished Friday's session slightly higher and completed the biggest weekly gain in almost 32 years. Gold closed only slightly lower at $1,740, but gained 6.5% for the week - the biggest seven-day rise since 2009. This is likely to continue translating to gains for some of our local copper and gold plays. Qantas is likely to come into focus today, after having a shocker of a weekend. The airline cancelled all flights following a dispute with its union groups. Despite the loss of revenue from grounding the fleet, investors will also be considering the potential impact to the brand and the resulting loss of forward bookings.
We are currently calling the Aussie market up 0.3% at 4368. However, we will have a better indication of the beginning price once the futures re-open at 9am. Overall, we are likely to see the Aussie market consolidate in a relatively quiet trading session today. Subdued leads from Friday night's session are unlikely to sway investors significantly in either direction. Traders will be eyeing tomorrow's RBA rate decision and key economic announcements out of the US throughout the week.
Market | Price at 7:30am AEST | Change Since Australian Market Close | Percentage Change |
AUD/USD | 1.0702 | 0.0030 | 0.28% |
ASX (cash) | 4368 | 15 | 0.34% |
US DOW (cash) | 12227 | 48 | 0.39% |
US S&P (cash) | 1286.7 | 6 | 0.44% |
UK FTSE (cash) | 5703 | -25 | -0.44% |
German DAX (cash) | 6360 | -32 | -0.50% |
Japan 225 (cash) | 9045 | 27 | 0.30% |
Rio Tinto Plc (London) | 36.20 | 0.57 | 1.60% |
BHP Billiton Plc (London) | 21.02 | -0.07 | -0.33% |
BHP Billiton Ltd. ADR (US) (AUD) | 38.83 | 0.14 | 0.36% |
US Light Crude Oil (Dec) | 93.49 | -0.05 | -0.05% |
Gold (spot) | 1743.5 | -4 | -0.20% |
Aluminium (London) | 2242.00 | 2 | 0.09% |
Copper (London) | 8175.00 | 47 | 0.58% |
Nickel (London) | 19700.00 | -50 | -0.25% |
Zinc (London) | 1985.00 | 41 | 2.11% |
RBA Cash Rate to be decreased by 25bp (Nov) (%) | 60.00 | -5 | -5.00% |
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 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.
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