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

 


Lack of Fiscal Cliff progression douses market enthusiasm

Lack of Fiscal Cliff progression douses market enthusiasm

By Tim Waterer (Senior Trader, CMC Markets)

The market relief over a debt deal for Greece lasted about 5 minutes before investor attention changed course towards the as-yet unresolved Fiscal Cliff. The rhetoric emanating from Washington in recent days has not exactly filled traders with an abundance of confidence that a deal will get done comfortably before the deadline. Investors had feared that the discussions between Republicans and Democrats would be a long, drawn out process and this is exactly what appears to be playing out on Capitol Hill.

With a lack of development over the US budget talks dousing some recent market enthusiasm, the run higher in ‘risk’ assets has for the moment stalled, much like the Fiscal Cliff discussions themselves it would seem. As a result, there is an uptick in US Dollar buying which has translated into weakness among commodities like gold and oil, with traders making a slight lean towards the side of caution.

Shares across Asia followed the tone set by Wall Street with weakness the theme of the day. And while the equity market weakness was not of the ‘game changing’ variety, it was enough to keep the major bourses trading in red numbers given new no developments on the Fiscal Cliff front.

The resource stocks were the most notable under-performers on the Australian market, with commodity prices taking a downturn due to the lack of progression from US budget talks. Overall, much of the buying momentum enjoyed in the last week or so seems to have dissipated with the gap over the Fiscal Cliff discussion still some way from being closed. However at the first sign of forward progression from US politicians I would expect the market to again be pepped up on expectations that a deal will eventually get done, albeit at the eleventh hour. But until then, the global financial market will be hanging on every word from Washington.
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