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

 


Investor Outlook Remains Unchanged

14.08 AEDT, Monday 19 November 2012


Investor Outlook Remains Unchanged

By Ric Spooner (Chief Market Analyst, CMC Markets)


Today’s quiet trading and minor market gain suggests that not much has happened to change investor outlook on two major risks to world growth – resolution of the US fiscal problem or the financial viability of the Greek government. Investors have not been prepared to risk much this morning on the basis of Friday’s statement of general intent by those participating in the fiscal cliff negotiations.

An announcement is expected this week on the next tranche of bailout funds for Greece. While payment will remove the short term risk of Greece leaving the Eurozone, market attention is likely to focus mainly on the likely impact of the conditions for bailout and how soon this whole issue will need to be revisited. Many analysts consider it inevitable that other European nations will need to take a substantial haircut on their Greek bonds before the nation’s finances are in a viable position.

News that property prices rose in 35 of 70 surveyed cities in China last month is encouraging. The possibility of a really hard landing in China’s property market has been a key concern and indications of price stability are making the soft landing scenario more likely which is supportive for resource stocks.

Last week’s declines in the Australian market make it more likely that we have not yet seen the market low. The break below recent support suggests that the market is correcting the whole of the rally since June. Although we have now retraced 38.2% of this rally, it’s more likely that the retracement will be somewhere between 50 and 61.8%. This implies a move in the S&P/ASX 200 index down to between 4284 and 4213.


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

_______________________________________________

The Financial Products offered by CMC Markets Asia Pacific Pty Ltd (ABN 11 100 058 213, AFSL No. 238054, the CFD issuer), CMC Markets Stockbroking Ltd (Participant of the ASX Group, ABN 69 081 002 851, AFSL No. 246381, the stockbroking services provider) and CMC Markets Pty Ltd (ABN 75 100 058 106, AFSL No. 279437, the education services provider) (“CMC Markets”) carry varying amounts of risk. Leveraged products, such as CFDs, Options and Warrants carry more significant risks than other products and may not be suitable for all investors. You should consider whether or not financial products including CFDs are suitable for you. CMC Markets recommends that you should seek independent professional advice and ensure you fully understand the risks involved before trading.

The information in this email is of a general nature and does not take into account your objectives, financial situation or needs. Therefore, you should consider the information in light of your objectives, financial situation or needs before making any decision about whether to acquire or continue to hold, the financial products or CFDs. CMC Markets recommends that you should seek independent professional advice. It is important for you to consider the relevant Product Disclosure Statements (PDS), the relevant Financial Services Guides and other CMC Markets documents in deciding whether to acquire, or to continue to hold financial products (including CFDs), which are available from CMC Markets by calling 1300 303 888 or visiting www.cmcmarkets.com.au.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news