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

 


IG Markets - Morning Prices Feb 21


In European trade, markets extended their gains on optimism that eurozone authorities and the IMF would successfully complete a Greek deal that would ensure the avoidance of a messy default. It also advanced on hopes that China's lowering of the RRR by 50 basis points on Saturday would ensure a soft landing for its economy. US markets were closed on Monday for the Presidents’ Day holiday.

Among the major averages, the FTSE put on 07% to close at 5945. The CAC was 1% higher at 3473 and the DAX jumped 1.5% to finish at 6948.

With US markets closed there aren’t many leads for investors to work off. As it stands, markets are in a holding pattern as investors wait to hear the outcome from the eurogroup finance ministers’ meeting. It kicked off at 1am Sydney time, and is still in progress at the time of writing. Although a deal is widely expected, what will be interesting will be the comments accompanying the deal. We will write more on this in the afternoon report. For now, we wait to see if there will be a ‘buy the rumour, sell the fact’ reaction to the outcome. The bulls will be hoping for a definitive arrangement which prevents a Greece style situation in the future.

Commodities advanced, due in part to hopes the latest phase of the Greek drama will be resolved and in great part to the move by China to lower the RRR by 50 basis points. In the absence of a curve ball from the meeting, this should be supportive of the resource stocks today. Reporting today we have Flight Centre, Monadelphous, Oil Search, OneSteel and REA Group. MND reported this morning, with its net profit coming in within guidance. FLT has increased its FY guidance range, a move which will likely be cheered by investors.

Ahead of the open, we are calling the Aussie market flat at 4256. On the economic calendar, we have monetary policy meeting minutes at 11.30am (AEDST), followed by some comments from RBA Gov. Mr Stevens at 1.30pm (AEDST). Investors will be looking for any indication of what might happen with rates going forward after this month’s surprise decision. The market has already started pricing out a rate cut for next month, with only a 30% chance of one now.


Market Price at 8:30am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0755 -0.0015 -0.14%
ASX (cash) 4255 -1 -0.02%
US DOW (cash) 13024 7 0.05%
US S&P (cash) 1368.0 -1 -0.07%
UK FTSE (cash) 5945 -10 -0.17%
German DAX (cash) 6945 20 0.29%
Japan 225 (cash) 9497 12 0.13%
Rio Tinto Plc (London) 37.06 0.84 2.32%
BHP Billiton Plc (London) 20.78 0.55 2.72%
BHP Billiton Ltd. ADR (US) (AUD) closed - -
US Light Crude Oil (Apr) 105.26 -0.09 -0.09%
Gold (spot) 1735.0 0.0 0.00%
Aluminium (London) 2179.00 15 0.69%
Copper (London) 8236.00 61 0.75%
Nickel (London) 19755.00 130 0.66%
Zinc (London) 1982.00 37 1.90%
RBA Cash Rate to be decreased by 25bp (Mar) (%) 32.00 0 0.00%


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news