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

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news