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


Market nerves to be tested today

09.36 AEDT, Tuesday 26 February 2013

Market nerves to be tested today
By Ric Spooner (Chief Market Analyst, CMC Markets)

At this stage, the first of this week’s major risk events looks like a clear negative for investors. The rally in share markets in recent months has been mainly about investor preparedness to pay more for stocks given perceptions of a lower global risk environment. While it’s unlikely that the Italian election result will lead to any immediate change in economic policy, it will lead to uncertainty and reduced confidence.

The Italian election results demonstrate that politicians don’t have a clear mandate for economic reform. While there is no immediate prospect of change to the pro Euro policies of the Monti government, this lack of mandate will increase the medium term political risk both for Italy and the Eurozone in the eyes of international investors. In the shorter term, the uncertainty created by the possibility of an interim government and further elections is a potential negative both for markets and for consumer and business confidence within Italy.

While the Australian market will open weaker this morning, it would take a clear move below support at 4950 to provide conclusive technical evidence that the medium term uptrend in the S&P/ASX 200 index is breaking down. Given the medium term nature of the risks from the Italian election and the possibility of positive news both from Mr Bernanke’s testimony and US budget negotiations still to come, investors may be cautious about selling too aggressively at this stage.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news