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

 


Markets recover following positive Chinese data

15.16 AEDT, Thursday 24 January 2013

Markets recover following positive Chinese manufacturing data


By Ben Taylor (Sales Trader, CMC Markets)

Despite a slow start to the day due to Apple’s disappointing result overnight our markets have done a u-turn in afternoon trade and are now showing signs of life following the Chinese flash PMI read which posted its fifth consecutive rise.

Traders view todays PMI manufacturing result as providing further evidence that the Chinese recovery is underway and will be maintained. The read echoes the IMF’s forecast overnight which has China’s growth at 8.2% for 2013.

However, Apples result had analysts questioning Apples dominance given increasing competition in what is now considered a saturated mobile device market.

Traders are now looking for the next catalyst to drive the markets higher. Many are pointing to continuous central banks support around the world, a rebounding China, improving risk in Europe and general low inflation as drivers.

Domestically, investors see any fall in Australian growth to be met with rate cuts which should be supportive for yield plays like the banks. This year’s election is also a catalyst for fiscal loosening which is believed to be favourable for our equity market.

The Australian banks imposed capital requirements along with conservative management style have helped to lower the banks inherent risk profile. Whilst the banks continue to offer compelling yields we will continue to see support for bank shares despite being now regarded as expensive.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Wool Exports Jump To The Highest In More Than A Decade

New Zealand wool exports jumped to their highest level in more than a decade in June, aided by a lower currency and strong demand from China, the nation’s largest market. More>>

ALSO:

Surreal Estate: Home Values Rise At Fastest Rate In Seven Years

The latest monthly QV House Price Index shows that nationwide residential property values for July have increased 10.1% over the past year which is the fastest annual rate since 2007... The Auckland market has increased 18.8% year on year. More>>

ALSO:

New Employment Laws: Talley’s AFFCO Workers To Strike

The decision comes after the Talley’s owned company walked away from mediation last week and applied to end bargaining under the government’s new employment laws - the first such application since the law came into effect. More>>

ALSO:

Private Action: Employer Pleads Guilty Over Forestry Death

The CTU has always known that the death of forestry worker Charles Finlay was due to the poor health and safety practices of his employer... "The CTU, with the support of Charles’s family, needed to take this ground breaking private prosecution." More>>

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news