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

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

f work for Pumpkin Patch staff

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news