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: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news