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

 


Commodities rise ahead of Wednesday FOMC meeting

15.23 AEDT, Tuesday 11 December 2012

Commodities rise ahead of Wednesday FOMC meeting


By Ben Taylor (Sales Trader, CMC Markets)

Neither renewed concerns over Italy or problematic Chinese trade data in the last few days could stop the market taking commodity prices higher. The main reason for the buying is Wednesdays FOMC meeting where traders are desperately trying to predict the Fed’s next course of action.

Another reason for buying commodity based markets is the belief that early next year we could see a new round of Chinese stimulus.

Any further stimulus is positive for commodity’s which moves have manifest themselves into a higher materials sector of late. It seems the Christmas rally is about getting ahead of the FOMC meeting and staying ahead of any potential Chinese stimulus early next year.

The cliff is however still likely to be the other topic traders contemplate into the end of the year. The Chinese trade result shows us just how sensitive other economies are on the US getting its policies in order. Everyone is keen to get this issue behind us however whilst it seems the market is now pricing a resolution in before Christmas and any change to that belief could spell a major u-turn in confidence.

The Australian NAB business conditions and confidence numbers was a led weight around the Australian dollar today. The survey is considered a forward indicator signifying that the surveys deep falls could spell a greater need to cut interest rates into the future to help protect an economy on the back foot.

The drop in interest rates seems to have done little to help our economy from slowing especially as mining investment growth slows. A drop in wages and new orders, worries about tighter fiscal policy, the high Australian dollar and the soft global economy is also plaguing the minds of business.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news