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

 


Unemployment figures refreshes Australian market

15.21 AEDT, Thursday 8 November 2012

Unemployment figures refreshes Australian market


By Ben Taylor (Sales Trader, CMC Markets)

The Australian market has reversed part of its heavy losses on the back of a better than expected unemployment number and a turnaround in US futures. Investors bailed out of mining and energy plays today preferring safer plays like healthcare and staples.

Today’s better than expected Australian employment result has helped bear the burden in the equity market. The Aussie dollar also shot to 1.0430 on the news before drifting back towards 1.0410 as the Chinese market took the overnight news harder than us.

The market doesn't seem convinced that the pace of Australian job creation will continue but does believe the RBA will hold fire for the time being as the jobless rate stays on hold.

As Obama won a second term in office investors grappled with the idea of a Democrat-dominated Senate and Republican-held House of Representatives. Investors want answers on how the two parties can work together amid the upcoming fiscal cliff to avert a recession. Fitch rating agency has also warned that the government needs to get its act together fast or lose its AAA credit rating.

Whilst it is widely expected the Republicans will give way to accept new revenues, no changes are however expected between now and 1 January. We can therefore expect a long period of debate and negotiations as the parties fight it out.

The Obama win reinforced the market expectation of ongoing quantative easing from the Fed. This was seen last night in the US bond market where the 10 year fell 12bp. The flight into US bonds showed the expectation of a long period of quantative easing and increased fear of recession.
ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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