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

 


IG Markets - Morning Prices Dec 27

Good morning,

After a fairly steady Asian session, risk assets declined through European and US trade ahead of the Christmas break. Market participants also remained concerned about the fiscal cliff negotiations, which we expect to get further leads on when Republicans reconvene later today. AUD/USD extended its losses below 1.04 and printed a low of 1.036, while EUR/USD fared better with a low of 1.0317. Since the reopen of the fx markets yesterday, we have actually seen risk come to life again with EUR/USD rising to a high of 1.325 and AUD/USD climbing to 1.037. The yen’s moves have been even more impressive with USD/JPY charging to a high of 85.73 on the back of Abe’s comments from the weekend and yesterday’s BoJ minutes from the November policy meeting. The message from Japan is clear at the moment, the incoming government will do everything in its power to weaken the yen and stimulate the economy.

Ahead of the open, we are calling the Aussie market down 0.3% at 4620. There is not much in it at all and we expect to see a relatively subdued session until we get further leads on the fiscal cliff negotiations heading into the end of the year. There is nothing to look out for on the local economic calendar, but we might get some leads from Japan after the Nikkei rallied 1.5% yesterday, helped by the BoJ minutes. Today is a significant day for Japan after Shinzo Abe was appointed Prime Minister and announced his cabinet yesterday. It is probably only a matter of time before we start hearing rhetoric from some of the ministers, which could have a bearing on trade. As it stands, it looks like the Nikkei will trade at its highest level since March 2011 today, which is when the earthquake hit. Currently our opening call for the Nikkei is for a 1% rise to 10325. Abe has already made comments regarding an inflation target of 2%, maintaining USD/JPY at 85-90 and appointing a BoJ Governor with views aligned to those of the government.

On a stock level, we expect to see a firmer start for BHP Billiton, with its ADR pointing to a 0.4% rise to $37. Iron ore remained steady above $135 and this will help underpin some of the iron ore heavyweights. Retailers like David Jones, Myer and Harvey Norman will be in focus today following reports of record festive sales helped by the low interest rates. As can be expected after the Christmas break, newsflow on the company front is relatively thin.

www.igmarkets.com


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news