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

 


US data vindicates market rally

US data vindicates market rally

By Tim Waterer (Senior Trader, CMC Markets)

Macro indicators from the key regions of China, Europe and the US in recent weeks has allowed higher yielding assets to ‘stay the course’ north for 2013, while new funds entering the market from the sidelines is also helping to fuel the rally.

The financial market rally appeared to receive vindication from the raft of US data on Friday, with traders seeing the upward revisions to payrolls data as a vote of confidence for US economic progression. Key equity benchmarks are hitting multi-year highs while commodity traders are also seeing evidence of there being a growth story at play, with US Crude Oil now poised for a return to trading at US$100 per barrel should the market continue to lean the way of risk.

The Australian Dollar today dipped after the dismal building approvals data, however the currency quickly recovered the lost ground with traders thinking that the result is unlikely to alter the RBA’s interest rates decision. Recent global improvements, namely from China, appear to have given the RBA the luxury of sitting on their hands regarding rates for the time being, though traders are still a little cagey of going long the currency until we see what tone the RBA strikes with its statement on Tuesday. In the meantime, the Euro continues to attract much of the buying flows with traders pricing out the disaster scenarios which plagued the currency in 2012.

After a decent start today the Australian sharemarket appeared to take the foot off the gas with some key sectors of the market unable to sustain the upward momentum. The bumper lead from Wall Street made for a day of green numbers across most of the Asian region, however the underperformance of the ASX200 today is perhaps due to what can be viewed as a pre-emptive move higher by the Australian bourse last Friday (where the index added 42 points).

ends


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news