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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news