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

 


Australian investors influenced by China’s manufacturing

09.36 AEDT, Friday 25 January 2013

Australian investors more influenced by China’s manufacturing than Apple resultstralian

By Ric Spooner (Chief Market Analyst, CMC Markets)

The Australian market is likely to maintain a firm tone today. Apple’s disappointing sales results were the main negative factor for US indices overnight but this is unlikely to worry local investors too much. Broader economic statistics released over the last 24 hours, including China’s PMI and US jobless claims did nothing to disturb the consensus view of an improving, although moderate economic growth outlook.

To some extent, reports of disappointing iPhone sales are a barometer of international consumer caution. However, iphone sales also potentially reflect Apple’s competitive position within the sector and some saturation as the smart phone market approaches maturity.

Microsoft’s results, released after the market closed will provide investors with some comfort that demand in the overall IT sector is in reasonable shape. The strong performance of Apple and the tech sector which has a low weighting in the Australian index was one of the factors behind the local market’s underperformance throughout much of 2012. In the current circumstances the lack of major tech stocks may help our market outperform.

While investors are likely to continue chasing yield, we may see some book squaring from short term traders later in the day. Traders are often more inclined to square positions prior to a long weekend rather than stay in the market for two US and European trading sessions before the local market re- opens.
ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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