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

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news