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

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news