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

 


Market shows signs of life

15.29 AEDT, Thursday 29 November 2012

Market shows signs of life


By Ben Taylor (Sales Trader, CMC Markets)

The Aussie market has shown signs of life today following indications of a US political compromise, and Australian capital expenditure data, which has increased the chances of a December interest rate cut.

The better than expected capital expenditure data came out today like a double edged sword. On the one hand the result showed an encouraging pick-up in private capital expenditure mainly in plant and equipment. While this is promising we also saw a falling rate of growth in future spending intentions with the greatest portion coming from mining.

The idea that we are nearing a peak in mining investment pushes the focus onto the RBA’s ability to sure up our economy through interest rate cuts. Today’s revelations saw our dollar ease slightly as the chances of a December interest rate cut increases.

The markets are still however going to continue to take their cues from the US fiscal cliff. The negotiations are engrossing investors at the moment and we will continue to yo-yo until some form of clarity is revealed.

Algorithms and high frequency trading have dominated the markets in the current low volume environment, this has meant any hint of fiscal-cliff propaganda has resulted in higher highs and lower lows intradays. Whilst the President and House speaker John Boehner seem to be portraying signs of compromise traders are however not buying into the PR talk in its entirety.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news