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

 


IG Markets - Morning Prices Dec 24

Good morning,

Risk assets continued to drift lower on Friday with no signs of political leaders reaching a deal. Following House Speaker John Boehner’s decision to pull the pin on the Plan B vote, we have seen risk decline from the previous highs posted in anticipation of a deal. With negotiations stalling, investors are happy to sit on the sidelines and lock in recent gains. Looking at the forex markets, AUD/USD dipped below 1.04 to a low of 1.0395 while EUR/USD tested 1.316. The euro is mildly weaker this morning with some pinning this to PM Mario Monti’s decision to not run for government at the upcoming February elections. However, if there is an opportunity for him to run for a party that aligns itself with his policies then he will be available. USD/JPY remained resilient after finding support at around 83.90 and pushed back above 84 to a high of 84.4 this morning.

Ahead of the open, we are calling the Aussie market up 0.4% at 4643. This is mainly a result of US futures being down significantly in Friday’s Asian session, only to recover after the local market closed. With US futures up around half a per cent from Friday’s close, it’s not surprising for our market to be called up. Regardless, we expect a fairly quiet session with no major data releases on the calendar. It is also a shortened trading day, with the ASX closing two hours early at 2pm today. Elsewhere in the region, Japanese markets will be closed for the Emperor’s birthday while other markets are likely to be quiet ahead of the Christmas holiday.

On a stock level, we expect to see a firmer start for BHP Billiton, with its ADR pointing to a 0.8% rise to $37. Iron ore remained steady above $135 and this will help underpin some of the heavyweights. We expect to see most risk assets treading water in today’s session with investors exercising some caution on the back of fiscal cliff concerns. Gold fell yet again and this will keep the local gold plays on the back foot. Yield plays are likely to remain in favour along with some of the defensive names.

www.igmarkets.com

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news