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

 

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Scoop Business: ComCom Charges Hawkins’ Finance Companies Over Debt Recovery

The Commerce Commission has filed criminal proceedings against two finance companies run by former 1980s high-flyer Allan Hawkins over their debt recovery practices. More>>

ALSO:

Science Media Centre: The Big Science Stories Of 2014

It was a dramatic year for science, one that witnessed a severe outbreak of Ebola in West Africa and an historic mission to land a space probe on a comet. On the home front... headlines with animal testing for 'legal highs', 1080 use to tackle increased pest numbers and court action over genetically modified organisms among the most-covered stories. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news