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

 

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news