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

 


IG Markets - Afternoon thoughts Dec 24

Good afternoon,

FTSE 5942 +2
DAX 7636 Closed
CAC 3667 +5
IBEX 8283 -8
DOW 13163 -28
NAS 2657 -8
S&P 1426 -4

Oil 88.51
Gold 1657

It has been a quiet session in the Asian region ahead of the Christmas break and with Japanese markets closed for the Emperor’s Birthday. Despite some negative leads, Asian markets have managed to edge higher with the ASX 200 up 0.3%, the Hang Seng rising 0.2% and the Shanghai Composite advancing 0.4%. This is a bit of an improvement on the losses seen in the risk space on Friday when fiscal cliff negotiations stalled. However, risk currency pairs haven’t done much and have been mostly sidelined with sentiment little changed from Saturday morning’s close. AUD/USD has stayed a touch below 1.04, while EUR/USD is sidelined at 1.318. USD/JPY gapped higher at the open to 84.4 and remains elevated despite Japanese markets being closed. The pair remains fairly well bid ahead of the BoJ minutes on Wednesday. Following last week’s decision to increase the asset purchase program, the minutes will be closely watched as investors hope for more aggressive action in the future. Japan also announces its new cabinet on Wednesday, so it is set to be a big day for the yen.

Markets are likely to maintain tight ranges ahead of the Christmas break and of course until we get further leads on the fiscal cliff negotiations at the end of the week. Ahead of the European open, we are calling the major bourses relatively flat. Most markets will only trade for half the session while Germany will be closed all day. As can be expected, with not much trading happening there is no major economic data on the calendar to look out for. Prime Minister Mario Monti’s decision to not run for government at the upcoming February elections will be one to monitor over coming weeks. However, if there is an opportunity for him to run for a party that aligns itself with his policies then he will be available. We are calling US markets modestly weaker with an early close scheduled and no economic data.

The ASX 200 has retreated from its early highs but still managed to eke out a 0.3% gain on limited volume. Most sectors have managed to gain ground with advances for materials and financial names lifting the overall market. BHP Billiton has risen 0.4%, Rio Tinto is up 0.1% but Fortescue Metals is down 0.9%. Gold miners have come to life today with Medusa and OceanaGold rising over 3% each despite the recent decline in gold prices. Iron ore remains steady above $135 and this is helping to underpin some of the heavyweights. Commonwealth Bank is leading the big banks with a 0.6% gain while Westpac and ANZ are only marginally firmer. Billabong has edged higher after allowing its bidders to conduct due diligence. The defensive space has had a stellar session with Telstra climbing 0.7%, CSL Limited up 0.4% and Wesfarmers adding 0.5%.

www.igmarkets.com


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news