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

 


IG Markets - Afternoon Thoughts

IG Markets - Afternoon Thoughts

FTSE 5842 -29
DAX 7352 -46
CAC 3429 -28
IBEX 7926 -58
DOW 13580 -30
NAS 2805 -7
S&P 1458 -3

Oil 89.46
Gold 1772

Asian markets are weaker after picking up on the negative lead from Friday’s US trade. There also seems to be a degree of caution being exercised ahead of the eurogroup meeting later today. The headline from Friday was a big 0.3% drop in the US unemployment rate to 7.8% (versus an 8.2% consensus). The overwhelmingly good report was greeted with mixed feelings, but the overall impact was negative on risk assets. Creating a sustainable recovery in the jobs market is one of the core principals of the Fed’s QE programme, and this positive data could mean QE won’t go on for as long as some hoped. There haven’t been any fresh developments in the Asian session today and therefore price action in the risk currency space has been fairly tame, with tight ranges being maintained.

The main event of the Asian session has been China’s return to trade after the Golden Week break. Hong Kong’s Hang Seng is down 0.7%, while the Shanghai Composite has shed 0.8%. The ASX 200 is 0.3% lower while Japan’s Nikkei is closed in observance of Health-Sports Day. Looking ahead to the European session, the major bourses are likely to give back some of Friday’s gains at the open with losses of between 0.5% and 0.7% expected. US markets are facing are mildly weaker open and we could see a fairly quiet session due to the Columbus Day holiday. On the economic calendar we have German trade balance and industrial production due out. However, focus is likely to be on the eurogroup finance ministers meeting as market participants keep an eye on the developments in Spain and Greece. With Spanish bond yields remaining relatively calm, we are unlikely to see Spain change its stance on requesting a bailout.

The ASX 200 was flat for most of the morning session and has since retreated to 4482, tracking Chinese markets lower. All up it’s been a fairly quiet session with resource names being the biggest drag after a reversal in commodity prices. Gold miners finally gave up some ground with Newcrest Mining down 3% and Kingsgate 2.5% lower. Financials are mixed with ANZ and Westpac gaining ground, while NAB and Commonwealth are lower. Bank of Queensland has slumped over 4% after being hit by a slew of broker downgrades on the back of some earnings concerns. Billabong has continued to slide, suggesting investors have lost confidence in the TPG bid. The industrials sector has been lifted by QR National, which has surged over 5% on news the Queensland state government will sell down its stake in the company.

www.igmarkets.com.au

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Three Months On: Quake Reciovery In Kaikōura And Elsewhere

Three months after the magnitude 7.8 earthquake on 14 November, encouraging recovery progress is being made in affected communities. More>>

ALSO:

Jetstar, Qantas For Govt Transport: Government Still In Talks With Air NZ

The government is still negotiating with national carrier Air New Zealand in a cross-agency air travel contract that will add a number of new airlines to the list of approved flyers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news