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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news