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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

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