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

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news