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.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


New Bill Introduced: GST On Online Services

These measures are an important first step in the Government’s efforts to deal with increasing volumes of online services and other intangibles purchased from overseas suppliers that should, under New Zealand’s tax rules, be subject to GST. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news