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.


© 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