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

 

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news