The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
IG has been making a grey market on Twitter for a few weeks now and our clients see the market cap closing out tonight at $22.8 billion, which would be a huge rise on the day. The stock launches tonight and the eyes on the market will be firmly on the name. There has been talk the company could list at $27, which on market estimates puts it on a slightly higher price to sales metric than Facebook, and well ahead of Google at 6.1x. It is an exceptional time to be listing, given US stock markets are on their all-time highs and Twitter’s peers are doing very nicely right now.
Australian employment is in full focus today at 11:30 and the market expects 10,000 jobs to be created. It’s interesting to see the market has priced in twenty two basis points of hikes from the RBA over the next twelve months, so a good number here may be partially priced in. The unemployment rate is expected to tick up to 5.7% and it will be interesting to look at the participation rate, which at 64.9% is the lowest since 2006. Of course if we see the participation rate increase it could really put upside into the unemployment rate which would be an AUD negative. Sellers should come into the market around 0.9540 and a break here could see 0.9700 come into play.
The ASX 200 should open weaker today, given 19.8 points come out of the market on the open (we took the points out of fair value at 16:00 yesterday), as NAB and ANZ go ex-dividend. There is good strength in the index at present, with 51% of stocks trading above their 21-day moving averages. A month ago only 36% of ASX companies were above their 21-day moving averages. Traders will continue to eye the multi-year high at 5457.
FMG is eyeing the March 2012 high of $6.18, and given the further strength in iron ore overnight, a move to this pivot high is not out of the question in the short term. UBS upgraded the stock to a buy yesterday, while Credit Suisse also put the stock on its preferred list, looking for a move above $7.00. FMG is a touch overbought, trading two standard deviations from its 21-day moving average, however this highlights the strength in the stock and pullbacks should be supported.
Follow these markets on our trading platform
Our Trader Radar watchlist will be updated each morning to give you quick access to important markets. To find the watchlist:
- Log in to the trading platform.
- In the Watchlist panel, select Trader Radar from the drop-down menu. If this panel is not visible, click the Watchlist button (at the top).
- Alternatively, select Trader Radar from the Watchlist section (near the bottom left hand corner) in the Finder panel.