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

 

TPP: A Global Fair Deal On Copyright - OurFairDeal.org

Alastair Thompson: The orginal "A Fair Deal" campaign brought together Internet NZ with a bunch of other groups including the Royal New Zealand Foundation for the Blind, the Creative Freedom Foundation , NZ Rise , Trademe and Kiwiblog's David Farrar. OurFairDeal.org takes the NZ based campaigns a giant leap forward bringing together 84 lobby groups from across the Asia Pacific in 6 countries into a global alliance. More>>

ALSO:

Business.Scoop: NZOG's Griffiths Backs Director Liability On Health, Safety

New Zealand Oil & Gas chairman Peter Griffiths has thrown his support behind legislative moves to make directors liable if the companies they govern fail to meet health and safety obligations. More>>

ALSO:

Working On It: Update On Meat Shipments

Primary Industries Minister Nathan Guy has provided an update on progress being made in resolving the delays in clearance for some meat exports to China... “New Zealand is a trading nation and from time to time these kind of technical delays will occur. This is a temporary issue, but we’re confident it can be resolved,” says Mr Guy. More>>

ALSO:

Scoop Business: NZ’s Services Sector Expands At Fastest Clip In 5 Mths

New Zealand’s services sector, which accounts for about 70 percent of economic activity, expanded at the fastest pace since October last month, led by activity/sales. More>>

ALSO:

Scoop Business: MRP Senior Managers In Line For $1.2M In Bonus Shares

Senior executives of newly listed, state-controlled MightyRiverPower are in line for shares in lieu of cash bonuses worth $1.2 million for the year to June 30, one of the company’s first disclosures to the NZX and ASX as a listed company show. More>>

ALSO:

Scoop Business: NZ Houses Overvalued By 25%, IMF Says

New Zealand housing is already overvalued by about 25 percent and if it continues to rise may force the Reserve Bank to hike interest rates, according to the International Monetary Fund. More>>

ALSO:

Odometer Moments: CO2 Hits 400ppm

As the amount of heat-trapping carbon dioxide in the atmosphere hit the symbolic milestone of 400 parts per million (ppm), youth climate change organisation Generation Zero says it is time for New Zealand to rise to the challenge of building a zero carbon future. More>>

Trust Planned: Shared Vision For Mackenzie Basin Welcomed

Conservation Minister Dr Nick Smith and Environment Minister Amy Adams today welcomed a report proposing a way to manage the contentious land intensification, water, landscape, and biodiversity issues in the Mackenzie Basin. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news