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

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news