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

 


IG Markets - Afternoon Thoughts

IG Markets - Afternoon Thoughts

FTSE 5761 -9
DAX 7167 +3
CAC 3427 +3
IBEX 7617 -20
DOW 12825 -10
NAS 2587 +3
S&P 1380 0

Oil 86.02
Gold 1735

Asian markets are mixed with China in focus on the back of some economic releases over the past few sessions. Leads from Friday’s US and European sessions were mostly negative although risk sentiment improved in US trade. US equities got a lift from another round of positive economic data, while Greece concerns weighed on European equities. Greece remains in a bad place at the moment, with some saying it could run out of funding within weeks. Apart from Europe, the rest of the world seems to be in a better place, with economic releases from the US and China showing strong signs of improvement. Consumer sentiment data in the US came in well above expectations and lifted risk assets in US trade. China data from the weekend showed a big jump in the trade surplus, with exports rising at the fastest pace in five months. Risk currencies have gained some ground in the Asian session with AUD/USD perhaps the biggest mover after trading back above 1.04. AUD/USD has printed a high of 1.0422 and will now be looking to hold above Saturday morning’s close at 1.0387. Should the positive momentum continue, traders will be eying near-term resistance at 1.044. The euro remains subdued with EUR/USD sidelined at 1.272 as Greece issues continue to cap gains ahead of the Eurogroup meeting.

Looking at the equities in the region, the Nikkei is lagging and is currently down 0.7% after some disappointing economic data. Japan’s preliminary third quarter GDP reading showed a 0.9% contraction versus consensus for a 0.8% contraction. USD/JPY hasn’t had much of a reaction to the data, nor to BoJ Governor Shirakawa’s comments, and has been sidelined at 79.5. Equities in China are positive despite some disappointing new loans data. It seems investors are generally confident that China data has bottomed following the strong bounce in exports reported over the weekend. The Hang Seng and Shanghai Composite have risen around 0.1% each. The ASX 200 is relatively flat. Ahead of the European open, we are calling the major bourses relatively flat to mildly weaker. Focus will be on the Eurogroup meetings and the approval of the 2013 budget by the Greek parliament. Market participants will be hoping the Eurogroup meetings will yield some clarity on the disbursement of funds for Greece.

The ASX 200 has erased some of its early losses and is now relatively flat at 4455. The resources names are lagging the rest of the market, with the materials and energy sectors still in negative territory. BHP Billiton is down 0.3%, but Rio Tinto (+0.1%) and Fortescue Metals (+2.4%) have responded to the positive move in iron ore prices and are both higher. Incitec Pivot (-3.3%) and Orica (-4%) are both trading lower on the back of disappointing earnings. Industrial names are also in negative territory with Qantas dropping 1.6%. Financial stocks have gained ground despite a steep loss in QBE Insurance shares. QBE is down nearly 9% after a disappointing trading update. The insurer released a market update on superstorm Sandy and 2012 forecast results in which it raised its allowance for large individual risk and catastrophe claims. This latest downgrade is going to dent confidence in QBE going forward. This is not the first time QBE has issued a significant downgrade and investors will grow increasingly wary of insurers after a bad run. Westpac has risen 1% and Commonwealth Bank has added 1.3% (just shy of $60)and are leading the big banks. Defensive names are leading the recovery with telcos and utilities enjoying steady gains.

www.igmarkets.com

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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