From Stan Shamu, Market Strategist ( IG Markets)

Global markets extended their losses overnight on concerns that European leaders are running out of options to solve the debt crisis. This sent French and Italian yields higher yet again. In the US, market weakness was triggered by slower-than-expected GDP data in the third quarter. The revised number came in at 2% after an initial estimate of 2.5%. However, losses were pared on news that the Federal Reserve and International Monetary Fund may do more to bolster the economy.

Among the major averages, the Dow Jones Industrial Average lost 0.5% to end at 11494. The S&P dropped 0.4% to 1188 and the NASDAQ was down 0.1% to close at 2521. S&P reaffirmed it would keep the US credit rating at AA+, after having stripped the government of its top AAA grade in August.

The market continues to be headline driven in an environment where investors are becoming increasingly nervous. The IMF offered a new credit to address contagion risks and the Fed minutes showed that some are favouring a further easing of monetary policy. The IMF announced a revamped credit-line program to help nations struggling with rising borrowing costs. Failure of this news to result in significant gains across markets shows just how cautious investors are.

It was a fairly mixed night, with no real risk-on/risk-off theme established in global markets. Equities were lower, but there were some gains in the commodities space with copper rising for the first time in four days. Gold and oil also edged higher, but nickel was weaker. Following the fairly bearish leads, we are calling the Aussie market down 0.6% at 4109. On the economic front, traders will be looking out for China's HSBC flash manufacturing PMI data due out at 1.30pm today. This could be a catalyst to how risk assets trade today.

Market

Price at 8:30am AEST

Change Since Australian Market Close

Percentage Change

AUD/USD

0.9838

-0.0005

-0.05%

ASX (cash)

4109

-24

-0.58%

US DOW (cash)

11473

-102

-0.88%

US S&P (cash)

1184.0

-13

-1.09%

UK FTSE (cash)

5204

-55

-1.05%

German DAX (cash)

5535

-113

-2.00%

Japan 225 (cash)

8244

-55

-0.66%

Rio Tinto Plc (London)

30.55

-0.28

-0.91%

BHP Billiton Plc (London)

17.66

-0.15

-0.81%

BHP Billiton Ltd. ADR (US) (AUD)

35.27

-0.33

-0.93%

US Light Crude Oil (Jan)

97.81

0.82

0.85%

Gold (spot)

1700.0

18

1.07%

Aluminium (London)

2070.00

3

0.15%

Copper (London)

7330.00

20

0.27%

Nickel (London)

17550.00

-250

-1.40%

Zinc (London)

1940.00

25

1.31%

RBA Cash Rate to be decreased by 25bp (Dec) (%)

39.00

-2

-2.00%

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.

Please contact IG Markets if you require market commentary or the latest dealing price.