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


IG Markets - Afternoon thoughts

Good afternoon

Across Asia, regional markets are mixed despite heavy losses being witnessed in the US overnight. The Hang Seng and the Shanghai Composite are the weakest performers, both lower by more than 1%, while the Nikkei and the Kospi are marginally in positive territory with gains of 0.4% and 0.1% respectively.

In Australia, the local market is currently 0.6% weaker at 4294 having earlier fallen to a session low of 4274. Losses on the day are broad based, with the heaviest percentage losses being seen across the healthcare, energy and information technology sectors. The materials sector, which has been expected to be amongst the weakest today, has pared some of its earlier losses courtesy of an unexpected Chinese trade surplus of US$5.35 billion versus consensus forecasts of a US$3.15 billion deficit.

That said, the composition of the trade balance number could be seen as slightly worrying for Australia. While export growth was slightly more than expected (8.9% versus 7% consensus), allaying some fears of a complete collapse in European demand, the import growth of 5.3% (versus 9% consensus) suggests a slowing demand for Australian commodities. While not ideal, these trade flows will no doubt have meaningful implications on Australia’s fiscal position. Export revenues resulting from slower Chinese demand and domestic supply constraints could leave a larger-than-expected hole in the national budget, but on a positive note increases the likelihood that the RBA may soon look to cut its cash rate.

As suggested this morning, the ‘will they, won’t they’ debate over the Fed’s QE intentions looks like continuing for a while longer and will be a key factor in determining trading patterns this week across equities, currencies and commodities.

Cameron Peacock
Market Analyst
IG Markets


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news