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

 


IG Markets - Afternoon Thoughts

IG Markets - Afternoon Thoughts

FTSE 5823 +20
DAX 7377 +34
CAC 3528 +13
IBEX 7889 +51
DOW 12976 -9
NAS 2665 0
S&P 1409 -1

Oil 86.68
Gold 1720

Asian markets are firmer as investors react positively to the comments made by US political leaders regarding the budget talks. After having struggled through most of European trade, risk assets experienced a sharp reversal after comments by US Speaker of the House John Boehner that he is optimistic about US budget talks. Markets pared losses with US President Barack Obama also quoted as saying he hopes to get the budget talks done by Christmas and he remains confident something will be done by year-end. Market participants swiftly brushed aside comments by Senate majority leader Harry Reid, which had weighed on markets in the previous session. Disappointing new home sales data, which showed a fall to 368,000 while consensus was for them to rise to 387,000, didn’t end up having too much of an impact. There haven’t been many fresh leads in the Asian session today, but sentiment has remained relatively steady with EUR/USD still hanging around the 1.295 region. AUD/USD made a move into 1.048 but has dropped back to 1.046 on the back of local private capital expenditure data. Despite there being so much emphasis on the Q3 CAPEX numbers, the reaction in the currency space was quite tepid. Perhaps the 2.8% growth at the headline print kept the AUD bears at bay, given the 6.2% gain in equipment, plant and machinery will help future GDP reads.

Looking at the equities in the region, the ASX 200 is 0.5% higher while the Nikkei and Hang Seng have climbed 0.6% each. The Nikkei is enjoying some relief after USD/JPY pushed back above 82. USD/JPY has extended its gains in the Asian session today and managed to print a high of 82.22. Japan retail sales numbers released this morning showed a 1.2% contraction, worse than an expected 0.7% fall. This will no doubt continue to fan talk that some aggressive measures are needed to bolster the economy and weaken the yen. Ahead of the European open, we are calling the major bourses firmer. On the economic front, we have the German unemployment change, European retail PMI and an Italian 10-year bond auction to look out for. US markets are facing a mildly weaker open with plenty of data on the cards. We kick off with the preliminary GDP reading and unemployment claims, with both data prints expected to show strong signs of improvement. FOMC member William Dudley will be on the wires ahead of pending home sales data, which is expected to show a 0.9% rise. With so much data on the calendar, we are bound to be in for a volatile session. However, it is clear that we are in a headline risk environment and any comments by political leaders on the fiscal cliff will supersede any economic data.

The ASX 200 is 0.5% stronger and is currently trading at 4467 with the miners leading the recovery. Earlier we had highlighted 4461 as being near-term resistance for the ASX 200. This level has now been broken with a new high of 4468.7 being printed for the week. A close above 4461 would be positive heading into tomorrow’s session. Materials names struggled early but have since turned positive with BHP Billiton firming 0.3% and Rio Tinto climbing 0.6%. BHP had its AGM today and the miner certainly sounds cautious on the outlook for iron ore and coal prices. The financial sector has also pushed higher, with ANZ Bank adding 0.8% and Westpac up 0.6%. Retailers are struggling with JB Hi-fi (-1.4%) and Harvey Norman (-0.6%) both weaker. Aristocrat Leisure has extended its run and is up another 5% after being upgraded to Outperform (from Underperform) by Credit Suisse. Some of the defensive sectors are lagging with the telecoms in negative territory.


www.igmarkets.com

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news