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.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news