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

 


September growth gives investors encouragement

09.49 AEDT, Tuesday 16 October 2012

September growth gives investors encouragement

By Ric Spooner (Chief Market Analyst, CMC Markets)

Better than expected US retail sales will be a positive for Australian investors today.

A good response by consumers to the reduced short term risks in Europe and to the wealth effect of rising stock and house prices is a necessary condition for improved growth over the next 12 months. Investors will be encouraged to see good growth in the September retail sales figures backing up a strong August number. This suggests improved consumer confidence following QE3 and the ECB initiatives to reduce the risks posed by high Spanish bond yields. The improved US retail sales figures follow a display of strength by local consumers and business with yesterday’s better than expected motor vehicle sales.

Precious metals markets have been struggling to gain on the rallies leading up to the announcement of QE3 by the US Fed. Gold and silver traders were becoming increasingly nervous that a “buy the rumour, sell the fact situation” was developing. Short term confidence cracked last night with prices breaking below short term technical support, triggering a round of profit taking. From a technical perspective gold may now fall back to the $1650-$1700 zone before attracting significant new buying support.

The S&P/ASX 200 index could test last week’s high at 4512 today. While a move above this level would be a positive for confidence, traders may want to see a clear break above this level and not just a minor breach. The local market is also likely to remain cautious in the lead up to the release of China’s September quarter GDP.


http://www.cmcmarkets.com/

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news