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

 


Chinese data helps sustain momentum

15.32 AEDT, Monday 10 December 2012

Chinese data helps sustain momentum


By Tim Waterer (Senior Trader, CMC Markets)

While the fiscal cliff discussions are still offering no joy for investors, better US jobs market data as well as upbeat Chinese indicators are helping to sustain the forward momentum of financial markets despite the standoff in Washington.

Chinese economic indicators have definitely been ‘coming to the party’ of late and this is helping offset the uncertainty pertaining to the US budget talks. The evidence is beginning to mount that the Chinese economy has turned the corner, a situation which is supportive of traders entertaining the idea of having higher yielding assets in their portfolios.

Rosier looking Chinese economic data has been supportive of the Australian Dollar with the currency again within striking distance of the 1.05 level. However, Chinese trade balance data today did miss the mark which saw the AUD give up some ground against the USD. The AUD slipped around 20 pips from 1.0485 to 1.0465 on the release.

While the Chinese trade balance data did miss the mark to the low side, on balance the signs have been positive from the world’s second biggest economy and todays result should do little to deflate investor confidence that things are indeed picking up.

Resource stocks on the Australian market were particularly responsive to the better looking US and Chinese economic indicators, with RIO among the standout performers on the local bourse to start the week. The lower print on the Chinese trade balance data did little to upset the momentum today of the Materials sector, with investors preferring to focus on the broader uptrend in Chinese economic indicators.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news