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

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news