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.

© Scoop Media

Business Headlines | Sci-Tech Headlines


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