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

 


Risk assets continue to rally as US polling begins

11.46 NZST, Wednesday 7 November 2012


Risk assets continue to rally as US polling begins


By Andrew May (Sales Trader, CMC Markets New Zealand)

The gloves are off for most risk asset classes as we head to a nail biter of an election result of just who will win the US presidential running and ultimately the world’s strongest economy for another four years. In one corner Republican candidate Mitt Romney, who most say will effectively cease the present reform of money printing and avoidance of hefty tax increases. While in the other, current US President and Democratic rival Barrack Obama, who with the fiscal cliff vastly approaching, continues his pledge of job growth and keeping interest rates lower for longer.

Either way expect a tumultuous continuation of the rally we've witnessed over the last 4-5 days. The NZDUSD is hot on the heels of last night’s Reserve Bank of Australia rate decision to keep rates on hold at 3.25%, effectively opening itself up to further rate cuts, found itself eyeing US 83c briefly touching an overnight high of 0.8290. The cross pair has had its best rally since early September as investor sentiment underpinned a return to solid risk appetite of aggressive portfolios. Expect a firm entrenchment at 0.8270-75 with a view to a post-election resistance of 0.8320-50.

Commodities are also enjoying the jubilant run and stocks have jumped as voters head to the polls to cast their ballot. West Texas December crude shot up $2.82 or 3.26% to US $88.46 and Gold up a huge $32.10 or just under 2% to US $1715.30 oz. The Dow Jones, in late trade and defying usual Election Day performance closed up 133.24 points or 1.02% to 13,245.68. Not since the 2000 election of Al Gore vs George W. Bush have markets proved so strangely and dramatically optimistic.

All Kiwi cross pairs were additionally boosted locally in the overnight Fonterra milk price auction, up 1.6% since the previous auction. However most localised data due later this week (employment figures and retail card spending) will be overshadowed by an election result that is surely too close to call.
ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Get More From Scoop

 
 
Standards New Zealand

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