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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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