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

 


European markets sees risk unwound

11.06 NZST, Wednesday 27 February 2013

European markets sees risk unwound

By Andrew May (Sales Trader, CMC Markets New Zealand)

The New Zealand dollar truly has a fight on its hands to keep its head above the 82c mark after falling nearly 120 points since Monday's open, currently trading at 0.8250.

This has seen markets broadly shift the risk aversion gear stick from second well and truly into fourth. Gold bulls flight to fancy has pumped the bullion price up $20 to USD$1615 oz as traders seek safe haven depots alongside the Japanese yen.

The Kiwi has fallen against all peered crosses and is seeking to re-establish supports that will quantify its attraction as an alternate risk asset. NZDAUD is once again toying with 80c having fallen 90 points in a clear channel this week breaking past a 23.6% Fibonacci retracement further cementing a short term fall towards 0.8030 finding support at January's 0.7980 levels.

The clear sell off in overseas markets and increasing bond yields that culminated yesterday, continues to disrupt European markets with what seems to be an already hung jury looming in the Italian election. Expect more white noise in both the currency and equity markets as a consequence of the uncertainty with the VIX up 30%, the biggest jump in two years to 17 points.

US markets have held their own overnight gobbling down a three course delight that began with stronger than expected Consumer confidence figures (69.6 vs 62) followed by buoyant January home sales numbers that boosted almost 16% against estimates of 3%. Federal Reserve Chairman Ben Bernanke's comments reaffirmed the current stimulus package would not be overshadowed anytime soon. The DOW closed up 115 points recovering some of Monday's catastrophic sell off to 13,900.


http://www.cmcmarkets.com/

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news