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

 

Myrtle Rust: Infections Found At 26 Sites

The affected properties include private gardens, plant nurseries and retailers and an orchard. The stats stand at: 21 properties in Taranaki, 3 in Northland and 2 in Waikato. More>>

Burgers To America: BurgerFuel Opens In The USA

BurgerFuel Worldwide are excited to announce the opening of their first USA based restaurant in Indianapolis, hot off the back of the Indy 500. More>>

English On Budget: Businesses Over-Egg Corporate Tax Cuts

Cutting New Zealand's 28 percent corporate tax rate is "not a panacea in the way business groups sometimes market it," says Prime Minister Bill English. More>>

ALSO:

Auckland Port To Recapture Gas: Union Calls On Ports To Stop Spewing Methyl Bromide

The Maritime Union of New Zealand welcomes the decision by Ports of Auckland to stop releasing methyl bromide emissions into the air. The move to fully recapture the toxic gas after fumigation sets a new benchmark for industry best practice. More>>

ALSO:

Retail: Banks Shoes Calls In Receiver

Banks Group, which runs 14 stores across the country under the brands including Banks Shoes and Shoe Connection, has been tipped into receivership at the request of director John Bank. More>>

ALSO: