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: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news