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

 


Shanghai drop amplifies falls elsewhere

15.01 AEDT, Monday 4 March 2013

Shanghai drop amplifies falls elsewhere
By Tim Waterer (Senior Trader, CMC Markets)

With this week’s global economic calendar looking stacked with potentially market-moving events, investors across Asia were largely exhibiting caution rather than optimism to kick things off today. However, the mind-set of negativity was not uniform across all Asian bourses, with the Japanese market liking what they heard from (BOJ Governor nominee) Kuroda in terms of his game plan to tackle deflation.

While the Nikkei was in good spirits to start the week, sliding property stock prices on the Chinese market caused higher yielding assets elsewhere across the region to retreat. The sharp drop on the Shanghai market had an amplifying effect on the negative performance of the ASX200, with the Australian market having commenced the day with losses far more modest in nature.

Ex-dividend trading from BHP played its part in the ASX200 slide, while lower trading on commodity markets to end last week set the stage for a weak showing by the resource stocks in general. A decline in base metals left the key miners on the Australian market particularly susceptible today, as illustrated by the clear underperformance of the Materials sector. That is not to say there was much joy elsewhere on the market today, with index pullbacks in the order of 1% or so becoming noticeably more common place in the past several weeks.

Trading conditions and events today were clearly not conducive to a good performance from the AUD, with support at 1.0150 being called into question following poor local building approvals data as well as Chinese equity market woes. Throw into the mix the upcoming RBA interest rate decision and general US Dollar strength and it is apparent that the Aussie Dollar has its work cut out at the moment. The AUD may be relying on the RBA striking a hawkish tone on Tuesday if the currency is to halt the slide.

ENDS

http://www.cmcmarkets.com/

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Planes: Jetstar Launches Regional Network

Jetstar, the Qantas Airways budget offshoot, launched its new regional network in New Zealand with special $9 one-way fares and has narrowed down its choices to five routes and four destinations - Nelson, Napier, New Plymouth, and Palmerston North. More>>

ALSO:

Fisheries: Report On Underrsize Snapper Catch

The report found that commercial fishers caught 144 tonnes of undersized snapper in the Snapper 1 area – about 3% of the total commercial catch – in the year ending February 2015. The area stretches from the top of the North Island to the Bay of Plenty and is one of New Zealand’s most important fisheries. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news