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

 

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Three Months On: Quake Reciovery In Kaikōura And Elsewhere

Three months after the magnitude 7.8 earthquake on 14 November, encouraging recovery progress is being made in affected communities. More>>

ALSO:

Jetstar, Qantas For Govt Transport: Government Still In Talks With Air NZ

The government is still negotiating with national carrier Air New Zealand in a cross-agency air travel contract that will add a number of new airlines to the list of approved flyers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news