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

 

Auckland Port Study: Port To Ship Out – No Departure Date

Interest groups in Auckland and its waterfront chose a group of representatives to determine the future of the port. Their consensus is that the Port is going to have to move but not before a credible location is confirmed... More>>

ALSO:

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Other Centres' Convention Centres:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news