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

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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