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

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news