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

 

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news