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

 


IG Markets - Afternoon thoughts Dec 28

Good afternoon,

FTSE 5969 +15
DAX 7650 -6
CAC 3680 +6
IBEX 8293 +12
DOW 13081 -15
NAS 2628 -5
S&P 1418 0

Oil 91.35
Gold 1663

Asian markets have responded to the late turnaround seen on Wall Street to post some healthy gains going into the weekend. With US President Barack Obama having reportedly cut his holiday short and returning to Washington to meet US leaders for last ditch talks, there is growing optimism that a deal can be knocked before the deadline. Once again Japan has been the standout in Asian trade with a swathe of data being released today. With various economic readings continuing to show weakness, more pressure will be on the government and BoJ to act imminently. At the same time, a CPI reading below consensus shows that the economy is still under deflationary pressure and with the new government looking to impose an inflation target, there is plenty of room for easing. As a result, we saw further weakness in the yen and USD/JPY extended its gains to a high of 86.64. The pair is trading above 86 for the first time since August 2010. The Nikkei has also responded to the yen weakness and is 0.8% higher. It is a holiday in Japan on Monday and today is the last trading day of the year for the Nikkei. Looking at the equities in the rest of the region, the Hang Seng has climbed 0.2%, the Shanghai Composite is up 0.5% and the ASX 200 0.6% firmer.

Risk currencies have been relatively flat in Asian trade with AUD/USD trading at around 1.037 and EUR/USD around 1.324. Most risk assets will probably remain range-bound until we get a clearer indication of what to expect from the fiscal cliff negotiations. Ahead of the European open, we are expecting a mildly firmer start for most of the major bourses apart from the DAX, which looks like it’ll open a touch weaker. On the economic calendar we have France GDP and consumer spending, Spain retail sales and Italian PPI. US markets are likely to open relatively flat with the fiscal cliff developments in focus. On the economic front, we have Chicago PMI, pending home sales and crude oil inventories on the calendar.

The ASX 200 has charged 0.6% higher and is currently trading at 4675 after having traded as high as 4688.6. This is a fresh 19-month high for the local market with the Santa Clause rally in full swing. Today’s gains have led the market to a 1.1% gain for the shortened trading week. Market participants are hoping US leaders can return to fiscal cliff negotiations over the weekend and knock up a deal before year’s end. The materials sector is leading the local market’s gains with iron ore heavyweights well under way after a jump in iron ore prices. Iron ore extended its gains to 139.40 and this is a big factor for the local market heading into the end of the week. BHP Billiton has tacked on 1.1%, Rio Tinto is up 1.8% and Fortescue Metals has climbed 2.2%. There has also been a recovery in some of the gold names after the precious metal gained ground yesterday. Newcrest has advanced 0.5% and OceanaGold surged 1.5%. In the industrials space, Boart Longyear is one of the best performers of the day, jumping 7% with its price action looking to fill the gap from the August sell-off. Financials are also contributing to the gains with the big banks all rising around half a per cent. Some of the defensives are lagging; particularly the telecoms which are currently flat.

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