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

 


Onwards and upwards theme continues for financial markets

15.09 AEDT, Wednesday 30 January 2013

Onwards and upwards theme continues for financial markets


By Tim Waterer (Senior Trader, CMC Markets)

Buying momentum continues to be on the side of higher yielding assets, with traders clearly liking what they are seeing in terms of both macro indicators and corporate earnings. Apart from the occasional blip such as the most recent US Consumer Confidence reading, by and large the economic indicators are building a strong case for global economic recovery and the prices of risk assets are responding accordingly. However, the case for economic recovery faces stern cross examination in the form of the US Non-farm Payrolls report come Friday.

The bar is set almost embarrassingly low for the vast majority of key macro indicators for the US, and anything mildly positive is serving to feed more buying enthusiasm. The prevailing market psyche is easily pleased, with traders relieved to see evidence of mild US growth rather than worrying about the headlines from 2012 mostly revolving around Greece. The major US indices are hitting multi-year highs and there could still be more to come while ever data is supportive of the ‘growth’ narrative, which has been the central theme of financial markets so far in 2013.

The Australian sharemarket operated in nonchalant fashion today, with the local bourse touching the 4900 level while also consolidating Tuesday’s bumper gains. Today it was the turn of Materials stocks to push higher with commodity prices having enjoyed a positive offshore session overnight. Meanwhile, banking stocks took what looked like a rest day after their recent push. The story for the ASX200 so far in 2013 has been ‘onwards and upwards’, and while history tells us that the golden run will eventually end, in this instance we could be seeing the 5000 level reached on the index before a pullback happens. Trading conditions remain conducive to the search for yield and this is likely to continue while macro indicators globally show signs of progression.

Tuesday’s NAB Business Confidence reading came at just the right time for the AUD which had looked likely to again slip below 1.04. Confirmation today of an Australian election in September had little impact on the currency with the AUD mostly spending time in the 1.0450-1.0470 range. While the AUD has enjoyed a solid 24 hours based on the more positive outlook from domestic businesses, the fate of the AUD for the remainder of the week could well lie with how US jobs data pans out on Thursday and Friday, and more specifically, by how the US Dollar reacts to the data.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news