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

 


IG Markets - Morning Thoughts

IG Markets - Morning Thoughts

After having been negative throughout most of the US session, equities recovered in the last hour of trade on reports that US leaders will return to work on the fiscal cliff negotiations this weekend. Risk assets declined in US trade as the latest headlines from the negotiations suggest leaders are still far from a solution. Senate Majority Leader Harry Reid was on the wires saying that a resolution before January 1 seems unlikely. This spooked market participants along with a weaker-than-expected consumer confidence reading. New home sales data (377,000 versus 382,000) also missed estimates while unemployment claims (350,000 versus 365,000) beat consensus. Sentiment was actually positive in Europe, with both equities and the single currency managing to gain some ground. EUR/USD pushed to a high of 1.328 before falling sharply in US trade to 1.32. Strength in Europe was attributed to improving French consumer confidence and Italian business sentiment. AUD/USD remains stuck in a range between around 1.036 and 1.038, while USD/JPY extended its gains and printed a fresh high of 86.15.

Ahead of the open, we are calling the Aussie market 0.2% firmer at 4657. This will see the local market up 0.6% so far in the shortened trading week and trade at last week’s high of 4658.7. Once again, 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 once again Japan is likely to be the main point of focus for the region. Today is another big day for Japan with plenty of economic releases on the calendar including manufacturing PMI, industrial production, jobs numbers and CPI. With the new government looking to impose an inflation target, a CPI reading below expectations will only mean there is significant room to ease. At the same time, should these various readings show weakness, more pressure will be on the government and BoJ to act imminently. Should this be the case, we could see USD/JPY retest the overnight highs and possibly trade beyond that. As it stands, we are calling the Nikkei up 0.5% at 10377.

On a stock level, we expect to see mildly firmer start for BHP Billiton, with its ADR pointing to a 0.4% rise to $37.14. Iron ore extended its gains to 139.40 and this is likely to be a big factor for the local market heading into the end of the week. Gold and oil also enjoyed some gains and this might lift some of the energy and gold names today. The financial sector is likely to underperform as market participants digest the fiscal cliff developments. Retailers will remain in focus after a fairly solid day yesterday.

Market Price at 8:00am AEST Change Since Australian Market Close Percentage Change
AUD/USD 1.0379 0.0044 0.43%
ASX (cash) 4657 9 0.19%
US DOW (cash) 13070 -47 -0.36%
US S&P (cash) 1415.1 -3.3 -0.23%
UK FTSE (cash) 5968 9 0.16%
German DAX (cash) 7645 22 0.28%
Japan 225 (cash) 10390 52 0.50%
Rio Tinto Plc (London) 35.42 0.33 0.94%
BHP Billiton Plc (London) 21.57 0.18 0.84%
BHP Billiton Ltd. ADR (US) (AUD) 37.14 0.15 0.40%
US Light Crude Oil (February) 91.14 0.22 0.24%
Gold (spot) 1663.80 5.8 0.35%
Aluminium (London) 2081 5 0.23%
Copper (London) 7917 105 1.34%
Nickel (London) 17290 -31 -0.18%
Zinc (London) 2333 30 1.30%
Iron Ore 139.4 4 2.95%

IG Markets provides round-the-clock CFD trading on currencies, indices and commodities. The levels quoted in this email are the latest tradeable price for each market. The net change for each market is referenced from the corresponding tradeable level at yesterday’s close of the ASX. These levels are specifically tailored for the Australian trader and take into account the 24hr nature of global markets.

Please contact IG Markets if you require market commentary or the latest dealing price.

www.igmarkets.com

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news