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

 


IG Markets - Afternoon Thoughts Feb 23

Across Asia, markets are mostly weaker after soft manufacturing and services PMI data out of Europe dampened risk sentiment. This followed on from China’s HSBC flash manufacturing PMI number which came in at 49.7, remaining in contractionary territory and highlighting the need for the recently-announced monetary easing. Equity markets globally now seem to have reached an interesting inflection point after having gotten off to a great start to the year. Investors are still hesitant to buy into the global growth story, due in part to persistent concerns about how bad things can go in Europe, and partly due to uncertainty on how China will manage in its attempt to engineer a soft landing.

Japan’s Nikkei has once again bucked the trend in the Asian region, gaining 0.2% as exporters strengthen on the back of a weaker yen. Australia briefly poked its head above water this morning, only to get sold off on the back of a deepening political crisis. Kevin Rudd resigned as Foreign Minister and Prime Minister Julia Gillard has called a leadership vote for Monday. Looking at the rest of the region, the Hang Seng is down 0.8%, while the Shanghai is up 03%. US and European markets are facing flat to modest losses at the open.

Greece fears seemed to have receded a touch last night, with global economic data seemingly the overriding driver. However, Dutch Finance Minister Jan Kees de Jager caused a stir by saying he had ‘doubts’ that Greece could implement the second bailout program. The talk on trading floors today is that once again Germany will stand firm and resist increasing the size of the financial ‘firewall’, with a spokesman for Angela Merkel suggesting there was no need to increase the size of the ESM. WTI continues to find support after the recent break of the May high and commentary from the Iranian supreme leader Ayatollah Khamenei , who said, ‘No obstacles can stop Iran's nuclear work’. This suggests that tension in the Middle-East will see both WTI and Brent supported, again highlighting that gold is in vogue as a hedge against any future spikes. The rising oil price is a concern, with some analysts feeling another $10 rise in prices could severely crimp global growth.

There were quite a number of earnings reports out today, with some of the well-received releases coming from Insurance Australia Group, Cabcharge and David Jones. IAG’s interim net profit was down 10.6% to $144 million, but was well above an expected $110 million after a lower-than-expected $396 million in claims from natural disasters. IAG confirmed its previous insurance margin guidance. DJS’ total sales were down 3.1% for the second quarter to $598.5 million, better than the $557 million expected. The company has launched Australia’s first ever department store and reaffirmed first-half profit guidance down 15%-20%. We continue to see a number of stocks that have been smashed recently with poor results expected, but not delivered, bouncing hard.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news