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

 


Local market supported by offshore strength

15.20 AEDT, Thursday 28 February 2013


Local market supported by offshore strength


By Ben Taylor (Sales Trader, CMC Markets)

Our local market has been supported by overnight strength in European and US markets which were buoyed by the possibility of a government being formed in Italy and further confirmation of the US housing led recovery.

Locally however, all eyes were on the first estimate of 2013/14 CapEx expenditure which came in close to estimates at $152.5 billion. The estimate is a very important guide as the RBA manages the transition of growth from the mining boom to growth in consumption and construction.

The numbers were a little higher than the market had expected which placed upward pressure on the dollar and lowered the expectations for a rate cut next Tuesday.

However with the mining investment expected to peak later in the year and with the non-mining sectors a long way from full throttle it’s widely expected that the RBA will use monetary policy to support the economy before the year is out. The next short term guide for interest rates will come in the form of our employment figures.

Talk of Italian political parties seaming together a dubious coalition was all the market needed to turn its frown upside-down. Meanwhile Bernanke’s second day of testimony to Congress also reconfirmed the plan to stick to the schedule with its asset purchasing program. These factors, combined with solid data confirming that the US housing market is driving the US recovery, had the market looking well bid.

With no pull back in sight traders have their ears pinned back, buying up banks and energy plays today for both yield and growth.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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