Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

IG Markets: Afternoon Report

Across Asia, regional markets are mostly firmer in light holiday trade following mostly higher leads from the US. The Hang Seng is the biggest gainer, up 0.7% while the Nikkei 225, Kospi and Shanghai Composite are all stronger between 0.2% and 0.3%.

In Australia, the ASX 200 is 0.2% lower at 4766 after fading from an early high of 4784 to hit an intra-session low of 4754. Unsurprisingly, trading volumes are extremely light as early broad-based strength gave way to mostly red trading screens.

The material and financial names are detracting the bulk of the points, down 0.5% and 0.2% respectively while energy and industrial names are modestly lower too. The defensive healthcare and utility sectors are bucking the broader trend, both higher by more than 0.5%.

The big story of the last few days was China’s decision to raise interest rates on Christmas Day. There’s no doubt this is having a negative impact on the mining sector, particularly the big diversifieds. Nonetheless, it’s very difficult to gauge to what extent given the near non-existent trading volumes.

If electronic base metal trade on the LME is anything to go by then it’s unlikely to have too much of a lasting impact after copper quickly traded to a new record high of $9437.50/ton on reasonably good volumes. If it was going to severely affect markets then we would have likely seen significant weakness in Shanghai and Comex trade, which have both been online for the last two sessions.

Nonetheless, it will be very interesting to see what happens when more volume comes into the market during European trade.

Elsewhere, there’s the prospect of more bad news from NSW and Qld based coal miners following more torrential rain and subsequent flooding. We could see even more tightness in the coal markets!

Ben Potter
Market Strategist
IG Markets

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

'Visionary' Leaders: Primary Sector Council Announced

A group of visionary agribusiness leaders is set to help our primary sector capture more value from its work, Minister of Agriculture and Rural Communities Damien O’Connor says ... More>>

ALSO:

Land Report: Issues With Soil Degradation

An environmental report released today has found we are damaging and losing our soils and our native plants and animals. More>>

ALSO:

Water Quality Report: Cause For Optimism

National River Water Quality Trends released by Land, Air, Water Aotearoa (LAWA) this week, reveal that for all river water quality parameters monitored over a 10 year period, more sites were improving than deteriorating. More>>

ALSO:

IMF Report On NZ: Positive Economic Outlook

Minister of Finance Grant Robertson has welcomed the IMF’s Concluding Statement, released following its annual visit, which provides an independent assessment of the strength of the New Zealand economy. More>>

ALSO:

Retail Power Price: Review Panel Named

The Energy and Resources Minister Megan Woods has released the details of who will sit on an expert advisory panel which is tasked with leading a review into the price of electricity in New Zealand. More>>

ALSO:

Increasingly Disruptive Threats: Govt Cyber Security Refresh

Broadcasting, Communications and Digital Media Minister Clare Curran today announced a comprehensive refresh of New Zealand’s approach to cyber security. More>>

ALSO:


Regional Growth: Action Plan To Modernise Taranaki’s Economy

The Provincial Growth Fund (PGF) will invest up to $20 million to help future-proof the Taranaki region by diversifying its economy, creating additional jobs and leveraging off the strong base the region has established through its oil, gas and agricultural ... More>>

ALSO: