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

 


Markets’ Confident Start To 2013 Continues

15.26 AEDT, Wednesday 16 January 2013

Markets’ Confident Start To 2013 Continues
By Tim Waterer (Senior Trader, CMC Markets)

While financial markets have enjoyed a confident start to 2013 so far, it is still a potentially hazardous environment for investors with cliff fears replaced by those of a ceiling (of the debt variety). It appears the debt ceiling will be the prevalent theme for traders going forward. But with more political wrangling likely to come, at least investors will be ‘match fit’ for this scenario after the events in Washington at the end of 2012.

The Euro has enjoyed a very brisk start to the year and Jean-Claude Juncker”s comments about its high level may not have a lasting negative effect, particularly given the unanimous ‘hold’ on rates by the ECB last week. With emphasis likely to grow concerning the US debt ceiling, a shift of funds back into the safe haven Greenback may well halt any aspirations of the Euro hitting 1.35 over coming months.

However, market inclination to maintain a bias toward risk appetite could well be dependent upon Chinese GDP data later in the week. Chinese macro data finished 2012 with a relatively wet sail and if we see a GDP number approaching the 8% level this may hold the key for an AUD push towards 1.0620.

Aussie Dollar performance this week is also likely to be defined by Thursday’s local employment data. A strong result could see chances of a February RBA rate cut continue to be priced out. The AUD has continued to operate in close proximity to the 1.0560 level today with moves of a more significant nature likely reserved until we see what shape the labour market is in on Thursday.

The ASX200 continued it’s rather measured 2013 ascent today, with financials and industrials stocks doing more than enough to counteract weakness from the mining heavyweights. Today was perhaps best described as a tentative press forward ahead of key economic releases due in the next two days. While this description may be understating the actual points gained by the index today, it would appear that a number of traders are waiting to see how Fridays Chinese GDP data pans out before buying with more conviction and this is particularly true of the mining sector.

Web: http://www.cmcmarkets.com/

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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