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

 

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO: