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

 

Our Fresh Water: Monitoring Report Confirms Serious Challenges For Rivers

• nitrogen levels are getting worse at 55 percent and getting better at 28 percent of monitored river sites across New Zealand • phosphorus levels are getting better at 42 percent and getting worse at 25 percent of monitored river sites across New Zealand More>>

ALSO:

Stats: Wind And Geothermal Emerge As Significant Sources Of Energy

Geothermal’s contribution to New Zealand’s total renewable energy generation increased from 11.5 percent in 2007 to 21 percent in 2015.... The value of wind jumped from $238 million (2 percent of total renewable energy generation) in 2007 to $884 million (6 percent) in 2015. More>>

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news