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

 


Markets remain fixated by Fiscal Cliff

15.12 AEDT, Friday 9 November 2012

Markets remain fixated by Fiscal Cliff


By Tim Waterer (Senior Trader, CMC Markets)

Financial markets are finding it difficult to adopt a ‘business as usual approach’ in the wake of the US election, with Wall Street fixated by Fiscal Cliff ramifications. The resulting defensive moves by traders in recent sessions is keeping the US Dollar well supported, particularly when combined with the negative rhetoric out of Europe regarding the ongoing woes in the region.

Chinese inflation data was well received by markets across Asia given that the lower reading would appear to allow more room for monetary easing by the PBoC. Asian bourses bounced from the session lows with traders finding some solace from this one positive development amid all the doom and gloom from the US and Europe which is putting markets on a tentative footing.

The AUD reclaimed the 1.04 level following the Chinese CPI data as traders took encouragement from the softer print. The AUD had been following the similar weaker trend exhibited by stocks across Asia following another session of negativity on markets abroad. Thursdays solid local jobs data is still providing something of an assist to the AUD however the generally negative themes from offshore are limiting any moves to the upside with concerns over the Fiscal Cliff capping risk assets at present.

It was another day of red numbers across the ASX with traders being in a ‘risk off’ frame of mind with traders concerned over the potential trouble brewing in the US and Europe. Ex dividend trading in the financial sector also weighed on the local index today, however stocks did recover some ground after the lower Chinese CPI allayed some fears. Focus will now be on further Chinese data due for release after the Australian market close including Retail Sales and Industrial Production numbers.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

The Future: Thirty Year Infrastructure Plan Released

The Thirty Year New Zealand Infrastructure Plan 2015 sets out New Zealand’s response to the infrastructure challenges we will face over the next three decades, Finance Minister Bill English says. More>>

ALSO:

Shopping: Online GST Discussion Document

GST: Cross-border services, intangibles and goods contains proposals to require overseas suppliers to register and return GST when they sell services (including online products such as e-books, music and videos) to New Zealand consumers. It also outlines the way forward for improving the collection of GST on all goods, including low-value imported goods. More>>

ALSO:

Keith Rankin: Auckland Slowdown?

Has the Auckland housing market turned? I went to a neighbourhood auction yesterday. Solid large 1950s' house on 1,000 square metres of land, sunny section, view over city from front of house, handy to train and to the expanding New Lynn retail and commercial hub. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news