IG Markets Morning Prices

Good morning,

US markets put in a good session to close the week out on Friday as Federal Reserve Chairman Ben Bernanke eased market concerns by saying the Fed was willing to do whatever it takes to stabilise the recovery. A better-than-expected reading on Q2 GDP also had the markets in a good mood.

The Dow Jones Industrial Average, S&P 500 and NASDAQ all finished the session 1.7% higher.

Locally, the ASX 200 is called to open 1.1% firmer at 4417 following the solid US leads.

In terms of sectors, we're likely to see strong support for material names after the basic materials sector in the US was the top performer, rising 3%. Base metal leads from the London Metals Exchange were encouraging too, with all base metals up more than 1%. In normal London trade, Rio Tinto and BHP Billiton were mixed, rising 1.5% and declining 0.3%. Surprisingly, the BHP ADR is only calling the locally listed stock up 0.1%. However, our gut feel is that it will open firmer than this.

Elsewhere, we should see good buying interest across a number of sectors including the energy, financial and industrial spaces. Their corresponding sectors in the US were all up more than 2%.

In summary, it looks like being a positive start to the new week, with stocks expected to be higher across the board. With the earnings season largely behind us, the market will once again focus more on Asian trade as the session matures.