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

 


Positive gains from overseas leads

15.04 AEDT, Tuesday 20 November 2012

Positive gains from overseas leads


By Ben Taylor (Sales Trader, CMC Markets)

Our market has followed on from overseas leads posting positive gains today. The majority of the outperformance has come from the mining and energy sectors which were oversold on fiscal cliff concerns and also buoyed by US housing sentiment overnight.

Greek government funding issues and US fiscal cliff concerns have warranted investors remaining underweight equities and risk overall in the past week. As the risk abates investors reduced their shorts and bid up the market.

The Aussie dollar initially fell on the RBA monetary policy statement which suggested another interest rate cut in the near term is likely. However, the falls were short lived following talk that the IMF will classify the Aussie dollar as an official reserve currency as recognition of it growing importance. Any such move is considered supportive for our currency.

While we have made progress today I would imagine the volatility will drop in the next few days ahead of Thanksgiving.

As the Republicans compromise with the Democrats we could see the deadlock concluded. This outcome will give business investment, employment and tax issues some much needed certainty. Structure and certainty will benefit the market and I believe should lead us higher.

The US housing market sentiment is now at levels not seen since the peak in 2006. This is very encouraging news for the US housing market and proves that the Fed’s low interest rate policy and stimulus measures are providing the much needed boost to growth.
ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news