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

 

Australia: Selloff seems ominous

15.06 AEDT, Tuesday 13 November 2012

Selloff seems ominous
By Ben Taylor (Sales Trader, CMC Markets)

The market started selling and just kept going today on the back of a deterioration of sentiment both locally and overseas. The selloff seems ominous and is far heftier than what we had estimated heading into today.

Europe’s ability to handle the Greek debt crisis and anticipating developments for the US fiscal cliff are causing the market to gyrate.

Australian business conditions hitting a three year low had investors bailing out of the Australian dollar and had them increasing their bets in the RBA cutting rates in December. A drop in wages, falls in employment and low inflation indicators had confidence remaining negative.

The market is bracing itself for US political deterioration and a potential departure of Greece from the Euro. Whilst the fiscal cliff is the big talking point the Republicans seem willing to concede on the deductions allowed by high income earners.

As European officials pushed the Greek budget through their parliament the world is waiting for Greece to be granted its next tranche of bailout funds. The IMF has however spoilt the party demanding Greek bondholders take another cut on their holdings to allow Greece to mend from its debt affliction.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>

OECD: NZ Economic Expansion Faces Long Term Challenges

The OECD Economic Survey of New Zealand discusses the gap between the strong short-term outlook and long-term challenges posed by low productivity growth and a changing labour market. More>>

ALSO:

GDP: