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

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news