IG Markets Morning Prices

Good morning,

In the US overnight, stocks climbed for a sixth session in a broad based rally. Optimism over stronger-than-expected results from Alcoa and Intel, as well as a positive bond auction in Greece were the main catalysts.

Among the major indices, the technology heavy NASDAQ was the top performer, adding 2% for the session. Elsewhere, the broad based S&P 500 rose 1.5% while the Dow Jones Industrial Average was 1.4% firmer.

We've seen a very good start to the earnings season. It's forcing a lot of bearish analysts to review their positions and cover back where appropriate, hence the rally we've seen in Intel after hours. It's not just headline figures that are impressive, but outlook statements are upping guidance, which is very encouraging.

In Australia, the ASX 200 is called to open 1.5% firmer at 4444 after positive leads from across the board. With all US sectors finishing firmly in positive territory, we're likely to see broad based gains today.

The materials sector should add the most points today after the US basic materials sector rose 2.7%, with all base metals on the London Metals Exchange rising between 1% and 2.2%. In normal LSX trade, Rio Tinto and BHP added 1.1% and 1.7%, with BHP's ADR calling the Australian listed stock to open 1.2% higher at $38.05.

Gains of 2.5% for both the consumer discretionary and financial sectors in the US should see both sectors well supported locally.

Energy names should rise too after the US energy space added 1.2% and crude oil futures surged 3.5% to US$77.24 per barrel since our 4.30pm close yesterday.

In summary, it looks likely to be a very positive session for the local bourse. In terms of economic news, Westpac Consumer Sentiment is due for release at 10.30am while RBA Governor Glenn Stevens is due to speak at 1.05pm.