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

 

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:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

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