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

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news