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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news