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

 

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news