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

 


Energy sector outperforming the market

Energy sector outperforming the market

By Miguel Audencial (Sales Trader, CMC Markets)
22 November 2012

The Australian equities market is trading higher today despite the Eurozone and IMF officials failing to agree on a deal regarding the aid for Greece. The cease fire in the Gaza strip and better than expected US economic data provided optimistic news to investors. Some investors are also hoping that an agreement can be made on Greece’s next aid when the Eurozone and IMF officials meet again next week.

As of this morning, the energy sector is outperforming the market due to higher energy prices despite the alleviation of some supply concerns for crude oil due to the cease fire agreement in the Middle East.

Crude oil traded slightly higher last night after notable losses the day before. It appears that investors are not fully convinced that the temporary break of hostilities is a long-term solution to the conflict in the region. Reported crude oil inventories also unexpectedly declined by 1.5 million barrels after being expected to rise by 800 thousand barrels. Natural Gas Storage figures also fell more than expected. The weaker US dollar contributed to the attractiveness of energy instruments as well as other dollar denominated commodities.

A lower than expected US unemployment claims figure and a higher than expected US Flash Manufacturing PMI data contributed to the US equities markets closing higher this morning.

Trading volumes across asset classes are expected to be subdued until the end of the week as Americans celebrate their Thanksgiving festivities. Unfortunately for those looking for their “fiscal cliff news fix”, developments on this issue would appear to be on a break as well. However, I expect this news break to be short lived and fiscal cliff news will grab market headlines until the end of the year.

The all-important HSBC Flash Manufacturing PMI for China will be released later this afternoon. The index has failed to reach 50 so far this year. A figure in expansion territory has the potential to stretch the gains in the Australian equities market further today.

In Europe, there are several manufacturing and services PMI figures due tonight. The EU Economic Summit will also start tonight where heads of state will meet in Brussels. Expect any figures or developments from these that are outside of expectations to have a relevant impact in the market.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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