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

 


Markets back on track

15.19 AEDT, Wednesday 6 February 2013

Markets back on track

By Tim Waterer (Senior Trader, CMC Markets)

Financial markets have shown many admirable qualities so far in 2013 and now we can add ‘bounce-back capabilities’ to that list. The rebound, while impressive, could perhaps be put down to selective short term memory loss by investors.

The European issues which caused the sharp falls earlier in the week did not suddenly fix themselves. However, better US earnings and PMI numbers had traders itching to make up the ground lost the day prior. This week has shown us that while there will inevitably be bumps in the road the natural tendency of the market is to push higher in this climate, and investors are positioning for further upside moves while global economic data provides cause for optimism.

After Tuesdays turbulence, investors jumped back on the horse as evidenced by the green numbers across benchmark Asian indices today. A better night of data in US and Europe helped offset the Spanish and Italian political worries from earlier in the week with traders instead concentrating on what the fundamentals are indicating.

Financial stocks were among the major drivers behind the ASX200 performance with the big four trading well into positive territory. Bellweather miners BHP and RIO were also well supported. Today can perhaps be described as the ASX200 getting back on track for an attempt at 5000 over the coming weeks.

A day after the RBA hinted at room for further rate cuts, negative Retail Sales results created a predictable downward move in the AUD. The somewhat surprisingly soft December sales data adds strength to a March rate cut, which is why we saw significant value stripped from the AUD immediately upon the release today. If we see a similarly disappointing jobs report on Thursday the AUD could be facing an uphill battle to keep above the 1.03 handle as speculation of interest rate easing intensifies.
ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news