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

 


Traders give the ‘sell’ button a rest

Monday 19 November 2012

Traders give the ‘sell’ button a rest following more positive Washington tone

By Tim Waterer (Senior Trader, CMC Markets)

With the rhetoric from Washington having struck a more conciliatory tone, financial markets have stabilised with traders giving the ‘sell’ button a rest at least momentarily. However, while talk that the two parties are coming closer together will settle some market nerves, until a deal is inked the downside risks of the market still exceed those to the upside by a very wide margin.

There is enough remaining doubt over the fiscal cliff discussions to keep the safe-haven USD well supported until a concrete outcome is reached. Traders of the Euro will be awaiting news this week on the next aid package for Greece, with this decision potentially causing a break to below 1.26 or above 1.28 depending on the outcome.

Today the AUD has grinded higher with sentiment across Asia showing some improvement from last week. The AUDUSD rate has moved around a quarter of a cent higher with buying of the US Dollar receding a little following more optimistic comments from Washington. The strength of US equity market performance tonight will impact the AUD’s attempt to reclaim 1.04, with the currency likely to follow the direction of the S&P500 regarding tendency of traders to adopt risk or safe haven assets. Attention locally will turn to the RBA minutes tomorrow as traders try and assess the likelihood of further RBA rate cuts.

Asian markets exhibited a calmer tone to start the week with the major bourses in the region ticking higher thanks to what is seen as more positive developments regarding the fiscal cliff talks. Australian shares advanced in rather measured fashion, with the market still showing signs of fatigue following the near 3% slump experienced last week. The Materials and Energy sectors responded best to a bounce back in commodity prices, however financial stocks in the main were less enthusiastic to kick off the week.

It seems traders are going to require further convincing from Washington in order for a more sizable market rebound to occur.
ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news