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.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news