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: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

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