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

 

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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