IG Markets Morning Prices

Good morning,

In the US overnight, the major indices finished largely unchanged as stronger-than-expected consumer confidence and a rise in home prices helped ease fears that the economy is faltering. Financials were helped by regulatory approval for a Chinese investment in Morgan Stanley.

The NASDAQ was the worst performer, down 0.3% while the Dow Jones Industrial Average and S&P 500 were 0.1% firmer and flat respectively.

Locally, the ASX 200 is called to open 0.8% higher at 4437 following outperformance among materials and financial names.

These two sectors were the real standout in US trade, rising 1.1% and 0.8% respectively. We're likely to see strength in the local materials sector as US mining names were boosted by the return of London trade, with base metals on the London Metals Exchange mostly firmer. In normal London trade, Rio Tinto and BHP Billiton added 2.4% and 1.9% respectively. BHP Billiton's ADR is calling the locally listed entity to open 0.7% stronger at $37.33.

We should also see some strength in the financial sector following a positive US lead, which was buoyed by news US regulators had approved a Chinese investment in Morgan Stanley.

Elsewhere, the industrial and energy sectors may weigh today as they fell 0.4% and 0.3% in US trade.

In summary, it looks like being a positive open for the Australian session. Although, as we saw yesterday any selling in Asia could easily make local traders nervous. In economic news, Q2 GDP is due for release at 11.30am while the heavily watched Chinese manufacturing PMI figure will hit the screens at 11am.