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

www.igmarkets.com.au

ENDS

© 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

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news