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

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news