IG Markets Morning Prices

Good morning,

On Wall St overnight, stocks opened sharply higher after a three day break, with the S&P 500 rising from a 10-month low amid speculation earnings growth in the upcoming reporting season will help equities rebound from their cheapest valuations since the March 2009 bear market low.

After being up more than 170 points, the Dow Jones Industrial Average finished the session 57 points or 0.6% firmer to be the best performer of the major indices. The S&P 500 added 0.5% while the NASDAQ could manage a rise of 0.1%.

Overnight futures action is calling the ASX 200 to open 0.3% higher at 4289 after all sectors in the US finished in positive territory.

Despite a modest gain of 0.1% for the US basic materials sector, leads from elsewhere suggest we should see solid buying support among the material names. On the London Metals Exchange, base metals were all firmer, up between 0.2% and 1.8% while in normal LSX trade, Rio Tinto and BHP surged, rising 5% and 4.9% respectively. Hence, BHP's ADR is pointing towards a gain of 0.7% for the locally listed stock at the open.

Energy names should also be well supported after Crude Oil futures edged higher overnight to be trading around the US$72 per barrel level.

Elsewhere, the consumer staple and financial sector should see buying support after they both rallied 0.6%.

In summary, it looks like the local market will extend yesterday's recovery at the open. With very little in the way of economic news, we're likely to take further cues from the open of Asian markets and their reaction to the positive overnight leads.