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

 


IG Markets - Afternoon Thoughts


IG Markets - Afternoon Thoughts

FTSE 6085 -19
DAX 7676 -15
CAC 3700 -8
IBEX 8546 -35
DOW 13467 -44
NAS 2724 -11
S&P 1468 -5

Oil 93.85
Gold 1678

Apart from the ASX 200, which has surged nearly 1%, the rest of the region seems to be in a consolidation phase as the leads on the global front remain fairly mixed. Investors have to contend with an array of factors ranging from economic data to earnings reports, with mixed outcomes across the board. In European trade, investors had to contend with Germany cutting its growth forecast, while the World Bank also cut its global growth forecast. Surprisingly this didn’t have too much of an impact on risk, with EUR/USD remaining flat lined at around 1.33. AUD/USD has experienced a fairly big move in Asian trade on the back of Australian jobs numbers. The pair was trading at around 1.057 at the beginning of the Asian session, but the fragile jobs numbers saw it drop to 1.0526. Unemployment came in at 5.4%, in-line with consensus, but the economy is shedding an incredible amount of jobs with 13,800 full-time jobs lost. Of course given some of the recent restructures announced by several companies, particularly in mining and mining services names and other industrials, this is hardly surprising. Other economic metrics such as trade balance and retail sales have also come in worse than expected in recent releases. AUD/USD might possibly find some support in the previous range (1.047-1.052). Other FX pairs have also started coming off, with USD/JPY dropping to 88.30 and EUR/USD looking like its headed towards yesterday’s lows at 1.324.

Looking at the equities, Japan’s Nikkei is only mildly firmer (+0.2%), while the Hang Seng (-0.2%) and Shanghai Composite (-1.1%) are weaker ahead of tomorrow’s data dump from China. Tomorrow’s Asian session will bring us China’s GDP, fixed asset investment, industrial production and retail sales. Ahead of the European open, we are calling the major bourses weaker. On the economic front, we will have the ECB’s monthly bulletin to look out for. US markets are also facing a softer open with building permits, unemployment claims, housing starts and the Philly Fed manufacturing index in focus. Of course we will also continue monitoring the wires for earnings and Boeing, which continues to struggle on the back of issues with its 787 Dreamliner.

The ASX 200 continued to punch higher, up 0.7% to 4771 after trading through this year’s high at 4750 as the local fourth-quarter earnings season started in earnest. Defensives are mostly leading and we suspect this was a result of investors piling back into yield plays and other defensives ahead of what seems to be a fairly uncertain month for risk. WPL, STO, ILU and PDN all reported before the open with mixed results. The two energy plays posted strong returns; WPL’s result was particularly firm with revenue up 30% and output higher by 31%, which saw the stock moving up 0.8% to $35.48. The report from mineral sands producer ILU showed a 30% drop in revenue and a 56% fall in zircon sales, yet these figures were expected as the company’s production rates also slowed to account for rising inventories. The latter piece of data saw ILU rise 7.9% early in the session to $10.12 as the company continues to see subdued trading in 2013. We see the high volatility in ILU continuing over the coming weeks as we look for fundamental updates from major research houses which have been quite bearish on the stock. We expect the company to bounce around over the coming days as most research suggests it is a sell; any upgrades, however, will push it higher. Following yesterday’s restructure announcement, Boral has extended its gains by 3% and have been upgraded to buy (from hold) by Deutsche Bank with price target of $5.50.

www.igmarkets.com

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news