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

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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