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

 


IG Markets - Morning Prices Nov 15


Risk assets were broadly risk-off with a variety of factors resulting in investors remaining cautious. Comments by US President Barack Obama have been pinned by many as the main trigger of the sell-off. President Obama feels higher taxes for wealthy Americans will have to be part of any budget deal and this is likely to cause problems in the negotiation process with the Republicans. Economic data out of Europe and the US disappointed, while China released the list of new Communist Party Central Committee members and Japan’s Prime Minister said he would dissolve parliament. European industrial production missed estimates and dropped the most in more than three years. At the same time, US retail sales and PPI also fell short of expectations. As a result, there was plenty of uncertainty to spook market participants and trigger selling in certain assets. The list released by Beijing does not include current PBOC Governor Zhou Xiaochuan, a move which analysts feel implies he will be stepping down, and this sparked some uncertainty on China’s policies going forward. Apart from equities, the Aussie dollar and yen experienced a sharp sell-off on this news. AUD/USD dropped from 1.046 down to 1.037, while USD/JPY rallied through 79.60 to a high of 80.31.

Ahead of the open, we are calling the Aussie market down 1.1% at 4342. This leaves the local market testing support in the 4350 region. On the local economic front, we have MI inflation expectations and new motor vehicle sales data due out. However, this is unlikely to have a major bearing on price action today as investors focus on global macro-economic issues. Even further dovish FOMC minutes failed to inspire buying. Elsewhere in the region, Japan’s Nikkei will be in focus on the back of the big move in the yen.

On a stock level, we expect to see a softer start for BHP Billiton, with its ADR pointing to a 1.5% drop to $33.23. We might finally see a recovery in the energy space today after oil prices rallied on the back of Middle East tension. Energy names have struggled recently due to concerns about LNG cost blowouts. There are earnings reports for Graincorp, James Hardie and first quarter sales from Myer to look out for. Seven West Media has been upgraded by Macquarie and Deutsche Bank following its recent AGM.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0367 -0.0086 -0.82%
ASX (cash) 4342 -46 -1.05%
US DOW (cash) 12548 -240 -1.87%
US S&P (cash) 1353.8 -25.5 -1.85%
UK FTSE (cash) 5671 -89 -1.55%
German DAX (cash) 7033 -115 -1.60%
Japan 225 (cash) 8658 -7 -0.09%
Rio Tinto Plc (London) 30.25 -0.65 -2.10%
BHP Billiton Plc (London) 19.13 -0.41 -2.09%
BHP Billiton Ltd. ADR (US) (AUD) 33.23 -0.50 -1.50%
US Light Crude Oil (December) 86.61 0.73 0.85%
Gold (spot) 1724.2 -3.8 -0.22%
Aluminium (London) 1967 -12 -0.58%
Copper (London) 7621 -48 -0.63%
Nickel (London) 16163 46 0.29%
Zinc (London) 2167 14 0.64%
Iron Ore 122.4 0.10 0.08%

IG Markets provides round-the-clock CFD trading on currencies, indices and commodities. The levels quoted in this email are the latest tradeable price for each market. The net change for each market is referenced from the corresponding tradeable level at yesterday’s close of the ASX. These levels are specifically tailored for the Australian trader and take into account the 24hr nature of global markets.

www.igmarkets.com


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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