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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news