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

 


Australia: Banks stocks supported by housing finance growth

Australian market holds the line as bank stocks are supported by growth in housing finance

By Ric Spooner (Chief Market Analyst, CMC Markets)
12.55 AEDT, 12 November 2012

China’s October export performance and Australia’s housing finance growth both serve to remind investors that there are plenty of “green shoots” for world economies at present and that the US “Fiscal Cliff” represents a risk in both directions. Improved consumer sentiment, signs of life in housing markets and a levelling out in China’s economy all potentially form a decent base for improved markets in 2013 if US politicians are able to negotiate a confidence building solution to the fiscal problem.

The Australian stock market has outperformed the US markets since the Presidential election and this may continue under present conditions. While a major fiscal drag on the US economy would reverberate through all world economies, the recent decline in US markets also reflects positioning for the risk to US investors posed by the potential for removal of tax concessions on dividends and capital gains as part of any US fiscal agreement.

Today’s housing finance figures are encouraging for those investors seeking refuge in bank dividend yields in recent months. Loan growth follows an uptick in building approvals over the past couple of months and increases the probability that bank stocks can continue to provide investors with an attractive yield while at the same time achieving moderate earnings growth.

The August peak at 4403 remains a key support level for the S&P/ASX 200 index. While the market remains above this level, the chances are that the current correction will be relatively shallow and the impact of fiscal cliff nerves relatively contained. A break below that level would indicate more serious investor pessimism and a correction of the whole rally from the June low at 3985. That could see a test the 200 day moving average at around 4280.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news