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.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news