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: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news