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.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Hepatitis A Link: Increased Surveillance Of Imported Frozen Berries

The Ministry for Primary Industries (MPI) Director General has issued a statement warning of a potential risk associated with imported frozen berries following four human cases of Hepatitis A thought to be linked to packaged imported frozen berries. More>>


Shocking Dairy Footage: MPI Failing Our Animals And Damaging Our Reputation

Greens “Nathan Guy needs to urgently look into how his ministry is enforcing animal welfare standards, how these appalling incidents happened under its watch and what it’s going to do prevent similar incidents happening again in the future." More>>


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news