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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

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