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

 


Market down following mixed leads from US

11.57 AEST, Thursday 31 January 2013

Market Down Following Mixed Leads from US

By Miguel Audencial (Sales Trader, CMC Markets)

The Australian equities market is currently trading lower endangering its impressive winning streak. Contrarians, who have been caught short in the past few sessions, expecting a pullback, may breathe a sigh of relief if this streak ends.

Our market received mixed leads from the US overnight. The three major US equities indices closed lower, the US fourth quarter GDP data was disappointing but the ADP employment reported higher than expected figures. The US Fed also confirmed it will continue its $85 billion a month of mortgage debt security and Treasury purchases. It was also verified that the US interest rates will remain at near zero levels.

Crude oil traded higher overnight despite a larger than expected rise in inventories. The confirmation that the Fed is going to continue its aggressive bond program is one of the reasons for this support. A slightly weaker US dollar also made the commodity more attractive. Tensions in the Middle East are still a concern, with violence escalating in Algeria, causing fears of supply disruptions.

Gold also traded higher overnight following economic data that showed the US GDP contracted in the previous quarter. This increased the precious metal’s appeal as a safe-haven. Confirmation that the Fed will continue its bond buying program also caused investors to use the precious metal as an inflation hedge.

There are a number of important economic figures still to be released this week. The weekly US unemployment claims figures will be released overnight and the US non-farm employment change is announced the day after. Several Manufacturing PMI figures are scheduled as well with the Chinese data, expected to be released tomorrow, being one of the most watched. If these figures report higher than expectations, the equities market’s momentum may extend to February.


Web: http://www.cmcmarkets.com/

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Half Empty: Dairy Product Prices Drop To Lowest Since December 2012

Dairy product prices fell to the lowest level since December 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and anhydrous milk fat. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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