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

 


Australia: Investors flee as equities hit new lows

15.01 AEDT, Thursday 15 November 2012

Investors flee as equities hit new lows
By Ben Taylor (Sales Trader, CMC Markets)

Markets are reflecting worse case scenarios today with investors fleeing in droves as equities hit seven week lows following falls in European and US markets overnight.

Miners and Banks have taken the largest hits today as a myriad of events plague our market. Obama's speech failed to calm the markets anxiety over the pending fiscal cliff, details emerged that Greece’s recession is deepening, and tensions escalating in the Middle East all added to the panic selling.

Obama’s speech overnight is the key reason we are taking such a hit today. While the markets were hoping for the Democrats and Republicans to stop playing hardball and find some middle ground the opposite seems to be happening. Obama believes he has a mandate from the people to repeal the Bush tax cuts for high income earners, which the Republicans strongly oppose. Increasing taxes for the rich has the two parties in a stalemate and is not something the market wanted to hear.

News of Israeli airstrikes on the Gaza strip and a flash estimate that had Greece’s GDP contracting further ahead of new austerity measures have done little to incite confidence at this time.

Today’s inflation expectation did provide a little ray of hope, with inflation sitting at the lower end of the band providing the RBA with room to move. Given the increasing risk from a macro level the chances of a cut in December are getting better.

ENDS

Web: http://www.cmcmarkets.com/

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news