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: 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