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

 


IG Markets - Afternoon thoughts 27/2/12

IG Markets - Afternoon thoughts

Across Asia, markets are mixed with the Nikkei trading higher, though the Aussie market is losing ground. The Nikkei continues to outperform on the back of a weaker yen. USD/JPY hit a high of 81.661 this morning, helping to ease pressure on the country’s exporters. A number of factors are at play in Australia, with ex-dividend falls in major stocks, including BHP Billiton and Woodside Petroleum accounting for most of the weakness. The Aussie market is down about 0.6%, despite Prime Minister Julia Gillard winning a vote to remain as the Labor party leader. The political circus rolls on, and clearly while Julia Gillard won the ballot (as expected), the warring at the top has set a very nervous six months for her.

Leading the way in the region is the Nikkei which is 0.5% higher, followed by the Hang Seng and Shanghai, both up 0.4%. The trend in global markets still seems to be up, however the whippy nature of price action as the S&P 500 tries to break 1370 is still very much evident and highlighted by today’s expected weaker open for US and European markets. The event risk starts to ramp up tonight, with US pending homes sales, Dallas Fed manufacturing activity and European M3 money supply on the economic data side.

US futures have hardly moved today, but the forex markets have been busy, and after an initial pop, risk forex has pulled back, with EUR/USD 40 pips off its high and commodity currencies actually lower on the session. The G20 went as planned, and luckily for risk assets, expectations were low going into the meeting so we didn’t have the same disappointment we have felt in meetings gone by. This week’s finance ministers’ meeting on Thursday and Friday should get that much more significance, as it seems Angela Merkel has eased her stance on a bigger EU bailout fund and narrative of either combining the EFSF and ESM or running the funds concurrently to create a €750 billion ‘firewall’ could be enough to open the door to a USD 2 trillion rescue package from the G20 in April. The talk on trading floors will be on the upcoming LTRO later in the week, and while consensus is for a take-up of around €500 billion, it seems the sums Lloyds and RBS are seeking should be around €15 billion between them. We start the fun and games off tonight however, with Germany set to vote on the EU bailout; it is expected to pass although any surprise rejection will send risk assets into a downward spiral.

On the reporting end, we had Caltex (CTX), Beach Energy (BPT) and Mesoblast (MSB) being some of the big movers. CTX delivered an interim loss of $714million down 325% including significant items after a write-down in refinery assets of $1.16 billion. Profit excluding one-offs and the impact of changes in the oil price fell to $264 million, which was in-line with a consensus of $267 million. Final dividend of 28 cents was above consensus. BPT’s interim profit of $56.3 million was up 165%, in-line with consensus helped by higher oil prices. Total production of 3.4646 One thousand barrels of oil equivalents was down 0.7% after rain and spot fires caused access issues. A dividend of 75 cents was declared, and higher capex is expected for FY12 assuming no flooding. MSB reported an interim loss of $44.1 million after costs associated with the expansion of multiple clinical and preclinical trials. Total revenue was $18.7 million. The company has a strong cash position of $241 million, which will enable development of multiple products. MSB has risen over 4%, while BPT had declined around 6% today.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news