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

 

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Interest Rates: NZ Dollar Jumps After RBNZ Trims OCR

The New Zealand dollar jumped more than half a US cent after Reserve Bank governor Graeme Wheeler cut the official cash rate by a quarter-point and said the currency needs to be lower, while dropping a reference to criteria that justified intervention. More>>

ALSO:

Drones: New 'World-Class' Framework For UAVs

The rules, which come into effect on 1 August, recognise the changing environment and create a world-class framework that accommodates ongoing development while still ensuring the safety of the public, property and other airspace users. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news