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: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news